{"id":210675,"date":"2026-04-26T23:43:12","date_gmt":"2026-04-26T23:43:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/210675\/"},"modified":"2026-04-26T23:43:12","modified_gmt":"2026-04-26T23:43:12","slug":"cftc-takes-ny-state-to-court-over-prediction-markets","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/210675\/","title":{"rendered":"CFTC Takes NY State to Court Over Prediction Markets"},"content":{"rendered":"

Federal regulators are suing New York State<\/a> over its enforcement of prediction markets.<\/p>\n

The Commodity Futures Trading Commission<\/a> (CFTC) announced<\/a> Friday (April 24) that it had filed suit against New York in response to what the regulator said was the state\u2019s effort to apply its gambling laws to CFTC-regulated contract markets.<\/p>\n

It\u2019s the latest in a series of legal battles between state and federal authorities centered around regulatory control over the prediction markets.<\/p>\n

\u201cCFTC-registered exchanges have faced an onslaught of state lawsuits seeking to limit Americans\u2019 access to event contracts and undermine the CFTC\u2019s sole regulatory jurisdiction over prediction markets,\u201d Michael S. Selig<\/a>, the commission\u2019s chairman, said in a news release.<\/p>\n

\u201cNew York is the latest state to ignore federal law and decades of precedent by seeking to enforce state gambling laws against CFTC-registered exchanges. As I\u2019ve said before, the CFTC will not allow overzealous state governments to undermine the agency\u2019s longstanding authority over these markets.\u201d\u00a0<\/p>\n

The release noted that the CFTC is seeking a declaratory judgment that federal law allows it exclusive authority to regulate event contracts and requests a permanent injunction blocking the state from enforcing \u201cpreempted state laws against its registrants.\u201d<\/p>\n

Advertisement: Scroll to Continue<\/p>\n

The CFTC has filed similar suits in Illinois, California and Arizona. This latest suit came the same day that New York Attorney General Letitia James joined 37 other attorneys general in an amicus brief supporting Massachusetts\u2019 lawsuit<\/a> against the prediction market platform Kalshi<\/a>.\u00a0<\/p>\n

That brief argues that Kalshi should be subject to state gambling laws<\/a> and calls on the court to reject the company\u2019s argument that its bets should be regulated solely by the CFTC.<\/p>\n

\u201cPrediction markets cannot ignore states\u2019 gambling laws that are designed to protect consumers,\u201d James said in a news release. \u201cKalshi\u2019s event contracts for sports are just illegal gambling by another name, and they should play by the same rules as every other licensed gambling platform.\u201d<\/p>\n

New York last week sued Coinbase<\/a> and Gemini Titan<\/a>, alleging that the companies\u2019 prediction market platforms are illegal, unlicensed gambling operations<\/a>. Coinbase\u2019s chief legal officer responded by saying that prediction markets are regulated by the federal government.<\/p>\n

Meanwhile, Wisconsin sued five prediction market platforms \u2014 Kalshi, Robinhood<\/a>, Coinbase, Polymarket<\/a>, Crypto.com<\/a> \u2014 and their affiliates last week, alleging they operate illegal sports betting operations in the state.<\/p>\n

\u201cThinly disguising unlawful conduct doesn\u2019t make it lawful,\u201d Wisconsin Attorney General Josh Kaul<\/a> said in a news release. \u201cThese companies\u2019 alleged facilitation of sports betting in Wisconsin should be shut down.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Federal regulators are suing New York State over its enforcement of prediction markets. The Commodity Futures Trading Commission…\n","protected":false},"author":2,"featured_media":210676,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[13035,83307,9,11,10,49,51,50,12,83308,17757,31826,31827],"class_list":["post-210675","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-cftc","tag-events-contracts","tag-new-york","tag-new-york-headlines","tag-new-york-news","tag-new-york-state","tag-new-york-state-headlines","tag-new-york-state-news","tag-news","tag-prediction-market-regulation","tag-prediction-markets","tag-pymnts-news","tag-whats-hot"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/210675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=210675"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/210675\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/210676"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=210675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=210675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=210675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}