By Emma Kinery | Arizona Capitol Times
Key Points:
- All three states have taken action against Kalshi or Polymarket
- Prediction market operators say they should be regulated by the CFTC
- There are at least 30 lawsuits between state regulators and industry operators
The Trump Administration is suing three states in an attempt to push back on a wave of lawsuits from state gaming regulators who say prediction market platforms Kalshi and Polymarket are violating their state gambling laws.
Kalshi and Polymarket, which are both based in New York, say they should be regulated by the Commodity Futures Trading Commission since they are registered with the agency as contract markets where users can buy contracts on the outcomes of games.
The operators maintain they are not gambling sites and users are not betting on the outcome of sports games, but rather operate more like derivatives markets, which are overseen by the CFTC.State regulators disagree, saying the companies should be beholden to the same state gaming laws as any other betting company.
The Trump Administration on Thursday filed lawsuits against Arizona, Connecticut and Illinois seeking to override the state statutes.
