CFTC files lawsuits against three states over prediction market oversight authority

The US Commodity Futures Trading Commission and the Department of Justice filed separate lawsuits on Thursday against Illinois, Connecticut and Arizona, challenging state actions targeting prediction market platforms. The CFTC argues that event-contract prediction markets fall under its exclusive jurisdiction as federally regulated designated contract markets, after the states sent cease-and-desist letters in 2025 citing gambling and licensing rules.