Written by Jesse Coghlan⁠, Staff Editor. Reviewed by Felix Ng⁠, Staff Editor.

Written by Jesse Coghlan⁠, Staff Editor.

Reviewed by Felix Ng⁠, Staff Editor.

CFTC pulls Wisconsin into fight over prediction market jurisdiction

Latest NewsPublishedApr 29, 2026

Prediction Markets Under Fire: CFTC Sues Wisconsin

The US Commodity Futures Trading Commission (CFTC) has taken a significant step in its fight for jurisdiction over prediction markets, suing the state of Wisconsin in a bid to assert its authority. This lawsuit marks the fifth time the agency has taken a US state to court over the issue. The CFTC’s move comes after Wisconsin sued multiple prediction market platforms, including Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase.

The CFTC argues that it has “exclusive jurisdiction” over event contracts on prediction markets, which are regulated under federal law. According to CFTC Chairman Michael Selig, states cannot interfere with the operation of federal law in regulating financial markets. The agency’s complaint, filed alongside the Justice Department’s Civil Division, seeks to rule that state gambling laws do not apply to CFTC-regulated designated contract markets and to issue a permanent injunction prohibiting Wisconsin from taking action against prediction markets.

A Growing Trend

This lawsuit is part of a larger trend of states attempting to regulate prediction markets, which the CFTC argues is outside of their jurisdiction. The CFTC has previously sued New York, Arizona, Connecticut, and Illinois over similar issues. The agency’s actions demonstrate its commitment to protecting the integrity of federal law and ensuring that prediction markets operate within a clear and consistent regulatory framework.

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What’s Next?

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Wisconsin sued the five companies on Thursday, and like many US state authorities, argued that prediction markets offering sports-related event contracts are illegal betting that requires state gaming licenses.

It is an assertion the platforms and the CFTC have rebuffed in the past, arguing the contracts are regulated only under federal law.

The CFTC argued in its latest complaint, filed alongside the Justice Department’s Civil Division in a Wisconsin federal court, that it has “exclusive jurisdiction” over the event contracts on prediction markets, regulated as designated contract markets under federal law.

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“Wisconsin’s attempt to criminalize and shut down federally regulated markets intrudes on the exclusive federal scheme Congress designed to oversee national swaps markets,” the CFTC wrote in its complaint.

The agency asked the court to rule that state gambling laws do not apply to CFTC-regulated designated contract markets and issue a permanent injunction prohibiting Wisconsin from taking action against prediction markets.

The CFTC’s complaint also named Wisconsin Governor Anthony Evers, Wisconsin Attorney General Josh Kaul and the Wisconsin Gaming Division and its administrator, John Dillett.

The Wisconsin Department of Justice, the state’s Division of Gaming and Governor Evers’ office were contacted for comment.

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• Regulation
• CFTC
• Prediction Markets