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Apart from Illinois, the U.S. CFTC also sued Connecticut and Arizona over the regulation of prediction markets.
ME News Report, April 3rd (UTC+8), following yesterday’s report that the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice sued Illinois, the two regulatory agencies also filed lawsuits against Connecticut and Arizona, claiming that the federal government has exclusive jurisdiction over prediction markets. The CFTC stated that it “formally recognized” event contracts for the first time in 1992, and Congress has granted it sole regulatory authority over the market. Previously, the gambling regulators of these three states had issued cease and desist orders to prediction platforms like Kalshi and Polymarket, arguing that event contracts violate state gambling laws. The CFTC chairman said that these states’ “radical and excessive” overreach has led to market uncertainty. Currently, 11 states have taken legal action against prediction markets, and congressional lawmakers are also advancing proposals to ban sports-related event contracts. (Source: PANews)