Kentucky Becomes Ninth State in CFTC’s Lawsuit Over Prediction Market Regulatory Disputes

Odaily Odaily星球日报讯 The U.S. Commodity Futures Trading Commission (CFTC) sued Kentucky on Tuesday, seeking to prevent the state from regulating prediction market platforms as illegal sports betting and gambling operations, further asserting federal jurisdiction over prediction markets.

Previously, Kentucky sued platforms such as Kalshi and Polymarket last week, accusing them of operating unlicensed illegal sports betting and gambling businesses within the state.

In its complaint filed with the U.S. District Court for the Eastern District of Kentucky, the CFTC argued that Kentucky’s attempt to shut down federally regulated designated contract markets interfered with the federal regulatory framework established by Congress for the national swaps market. The agency claims it has “exclusive jurisdiction” over event contracts and prediction market products.

Kentucky has become the ninth state the CFTC has sued amid disputes over prediction market regulation, highlighting the ongoing escalation of conflict between federal derivatives oversight and state-level gambling regulation.