(The Center Square) – The Commodity Futures Trading Commission filed a lawsuit Tuesday against Wisconsin’s attempt to block prediction markets from operating in the state.
Wisconsin Attorney General Josh Kaul filed a lawsuit last week targeting Kalshi, Robinhood, Coinbase, Polymarket, Crypto.com and their affiliates for operating what they call prediction markets on event contracts in the state.
“States cannot circumvent the clear directive of Congress,” CFTC Chairman Michael S. Selig said in a statement. “Our message to Wisconsin is the same as to New York, Arizona, and others: if you interfere with the operation of federal law in regulating financial markets, we will sue you.”
The CFTC claims that it has exclusive jurisdiction over prediction markets across the country.
The lawsuits are part of a national debate on whether states or the federal government should have the final say over prediction markets, which allow people to bet on real-world outcomes such as sports and elections.
As states ramp up enforcement against these markets, the Commodity Futures Trading Commission has asserted its exclusive authority, setting up a legal battle that could determine the future of event-based trading nationwide.
The lawsuits come as Wisconsin has approved allowing its 11 tribes to start operating online statewide sports wagering after compacts are created and approved for the revenue and state payments that will be made from the operations.
