The federal government is suing the states of Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators like Calci and PolyMarket.
On Thursday, the federal government filed a lawsuit against the states of Connecticut, Arizona and Illinois, challenging their efforts to regulate Market operators forecasting Such as Calcio and Polymarket.
All three states sent cease and desist orders to these companies accusing them of engaging in illegal online gambling under state law. Arizona also filed criminal charges last month against Calci for allegedly violating state gambling laws and a law that makes betting on elections illegal.
The CFTC asserts in court filings that it, not states, regulates these companies.
CFTC Chairman Michael S. “The CFTC will continue to protect its exclusive regulatory authority over these markets and defend market participants against overzealous government regulators,” Selig said in a written statement. He said Congress “rejected such a fragmented patchwork of state regulations” because it led to an increased risk of fraud and weak consumer protections.
Last month, the Trump administration He threw his support It stands behind operators Kalshi and Polymarket in a crucial legal battle that could have implications for how sports betting is regulated.
Connecticut Attorney General William Tong on Thursday accused the Trump administration of “recycling industry arguments” that have been rejected in district courts across the country.
“These contracts are clearly illegal gambling unlicensed under outdated state law, and we will vigorously defend Connecticut’s common-sense consumer protection laws,” he said.