CFTC sues Wisconsin to assert regulatory authority over prediction markets

Odaily Odaily News The U.S. Commodity Futures Trading Commission (CFTC) sued the state of Wisconsin on Tuesday, aiming to assert its regulatory authority after the state filed lawsuits against multiple prediction market platforms. In a statement, the CFTC said the lawsuit is in response to Wisconsin's legal actions against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase, five prediction market operators regulated by the CFTC. CFTC Chairman Michael Selig stated that states cannot circumvent Congress's clear directives, and that the agency will take legal action if they interfere with the enforcement of federal laws regulating financial markets. This marks the fifth such lawsuit the CFTC has brought against U.S. states, following previous actions against New York, Arizona, Connecticut, and Illinois. Wisconsin had previously argued that prediction market contracts involving sports events constitute illegal gambling requiring a state gambling license. The CFTC, in conjunction with the Civil Division of the U.S. Department of Justice, filed a complaint in a Wisconsin federal court, asserting its exclusive jurisdiction over prediction market event contracts that operate as designated contract markets. The defendants include Wisconsin Governor Anthony Evers, State Attorney General Josh Kaul, and the state's gambling regulatory department.