CFTC Sues Kentucky Over Prediction Markets, Expanding Federal-State Fight to 9 States
Updated
Updated · CNBC · Jun 23
CFTC Sues Kentucky Over Prediction Markets, Expanding Federal-State Fight to 9 States
3 articles · Updated · CNBC · Jun 23
Summary
Kentucky became the ninth state sued by the CFTC on Tuesday as the agency moved to block state efforts against prediction-market operators Kalshi and Polymarket.
The clash stems from Kentucky's own lawsuit last week, which said the platforms run illegal gambling products; the CFTC says the event contracts are swaps under its exclusive federal authority.
20 states are now involved in litigation against prediction-market platforms, and one has moved to ban them outright, underscoring a widening jurisdiction battle over sports-related contracts.
Kentucky is the first Republican-led attorney general's office targeted by the CFTC, after its earlier suits had been limited to states with Democratic attorneys general.