CFTC fights states over regulation of prediction markets

The Commodity Futures Trading Commission has joined a court battle against states to protect its ability to regulate prediction markets, which have become increasingly popular with consumers and have created controversy in recent months.

Some states have sought to regulate event-contract platforms, such as the prediction markets Kalshi and Polymarket, arguing, particularly for sports contracts, that they are akin to gambling and that state gambling laws have authority over them, not the CFTC.