Chris Prentice
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The Trump administration has sued Arizona, Connecticut, and Illinois to stop their efforts to regulate prediction markets, claiming they violate federal law. The lawsuits aim to block state gaming regulators from policing operators of prediction markets, including companies such as Kalshi and Robinhood.
The US government has sued three states to stop them from regulating prediction markets. The states of Arizona, Connecticut, and Illinois had sent cease-and-desist letters to companies like Kalshi and Robinhood, claiming they violated state gambling laws. The government says these efforts undermine federal law and the Commodity Futures Trading Commission's authority. The lawsuits are the first by the CFTC to block state gaming regulators. Arizona has also filed criminal charges against Kalshi. The CFTC claims that state regulators are overstepping their authority. The states have legalized sports betting, but are trying to exclude prediction markets. The federal government says this violates the US Constitution.
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