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Except for Illinois, the U.S. CFTC also sued Connecticut and Arizona over the regulation of prediction markets.
ME News message: On April 3 (UTC+8), following yesterday’s report that the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice filed a lawsuit against Illinois, the two regulators have also brought legal action against Connecticut and Arizona, arguing that the federal government has exclusive jurisdiction over prediction markets. The CFTC said it “formally acknowledged” event contracts for the first time in 1992, and that Congress has granted it sole regulatory authority over this market. Previously, the gambling regulators in these three states issued cease-and-desist orders to prediction platforms such as Kalshi and Polymarket, claiming that event contracts violate state gambling laws. The CFTC chair said these states’ “aggressive and excessive” overreach has caused uncertainty in the market. At present, 11 states have already taken legal action against prediction markets, and lawmakers in Congress are also advancing proposals to ban sports-related event contracts. (Source: PANews)