The Trump administration has filed lawsuits against Illinois, Arizona, and Connecticut to support prediction markets. The Justice Department and the CFTC argue that the CFTC has exclusive jurisdiction over sports-related wagers on these platforms.
The lawsuits were filed jointly by the Justice Department and the CFTC, marking a significant move to challenge state gambling regulations. The Trump administration contends that the CFTC should regulate sports-related wagers on platforms like Polymarket and Kalshi. This action comes amid a growing number of state lawsuits claiming that these prediction markets are unregulated sports betting.