{"id":579931,"date":"2026-04-03T16:58:17","date_gmt":"2026-04-03T16:58:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/579931\/"},"modified":"2026-04-03T16:58:17","modified_gmt":"2026-04-03T16:58:17","slug":"federal-government-sues-three-states-over-their-regulation-of-prediction-markets-winnipeg-free-press","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/579931\/","title":{"rendered":"Federal government sues three states over their regulation of prediction markets \u2013 Winnipeg Free Press"},"content":{"rendered":"

The federal government on Thursday sued Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators such as Kalshi and Polymarket.<\/p>\n

All three states have sent cease and desist orders to such companies accusing them of engaging in illegal online gambling under state law. Arizona also filed criminal charges last month against Kalshi for allegedly violating state gambling laws and a law that makes betting on elections illegal.<\/p>\n

The Commodity Futures Trading Commission contends in court filings that it, not the states, regulates these companies.<\/p>\n

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\n\t\t\t\t\t\t\t\t\t<\/a>
\n\t\t\t\t\t\t\t\t\tA crew assembles the Polymarket ‘Situation Room’ pop-up bar at Proper 21 on K Street, Thursday, March 19, 2026, in Washington. (AP Photo\/Allison Robbert)<\/p>\n

\u201cThe CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators,\u201d CFTC Chairman Michael S. Selig said in a written statement. He said Congress \u201crejected such a fragmented patchwork of state regulations\u201d because it led to increased risk of fraud and poor consumer protection.<\/p>\n

Last month, the Trump administration threw its support behind the operators Kalshi and Polymarket in a critical legal battle that could have implications for how sports betting is regulated.<\/p>\n

\n\t\tWinnipeg Free Press | Newsletter\n\t<\/p>\n

\t\t\t\t\t\"Sign<\/p>\n

Connecticut Attorney General William Tong on Thursday accused the Trump administration of \u201crecycling industry arguments\u201d that have been rejected in district courts across the country.<\/p>\n

\u201cThese contracts are plainly unlicensed illegal gambling under time-worn state law, and we will aggressively defend Connecticut\u2019s commonsense consumer protection laws,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"The federal government on Thursday sued Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators…\n","protected":false},"author":2,"featured_media":579932,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[194296],"tags":[49,48,22073],"class_list":["post-579931","post","type-post","status-publish","format-standard","has-post-thumbnail","category-winnipeg","tag-ca","tag-canada","tag-winnipeg"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/579931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=579931"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/579931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/579932"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=579931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=579931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=579931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}