{"id":561776,"date":"2026-04-03T07:54:12","date_gmt":"2026-04-03T07:54:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/561776\/"},"modified":"2026-04-03T07:54:12","modified_gmt":"2026-04-03T07:54:12","slug":"federal-government-fights-states-regulation-of-prediction-markets","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/561776\/","title":{"rendered":"Federal government fights states’ regulation of prediction markets"},"content":{"rendered":"

The federal government on Thursday sued Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators<\/a> 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<\/a> 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

\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<\/a> behind the operators Kalshi and Polymarket in a critical legal battle that could have implications for how sports betting is regulated.<\/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":561777,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[1017,3830,28,24997,2000,1996,3827,12,15363,793,3132,5630,5629,3130,248807,111,792,800,104335],"class_list":["post-561776","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-arizona","tag-az-state-wire","tag-business","tag-commodity-futures-trading-commission","tag-connecticut","tag-ct-state-wire","tag-domestic-news","tag-donald-trump","tag-gambling","tag-general-news","tag-government-regulations","tag-il-state-wire","tag-illinois","tag-lawsuits","tag-michael-s-selig","tag-politics","tag-united-states-government","tag-washington-news","tag-william-tong"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/561776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=561776"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/561776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/561777"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=561776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=561776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=561776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}