More Than 12 States Sue Kalshi, Polymarket as CFTC Sues New York Over Jurisdiction
Updated
Updated · South Florida Sun Sentinel · Aug 7
More Than 12 States Sue Kalshi, Polymarket as CFTC Sues New York Over Jurisdiction
3 articles · Updated · South Florida Sun Sentinel · Aug 7
Summary
More than a dozen states have sued Kalshi and Polymarket, arguing the prediction-market platforms are violating state gambling laws rather than operating solely under federal commodities oversight.
New York recently won an early court fight when a federal judge refused Kalshi’s bid to block state enforcement, even as the CFTC separately sued New York and is battling eight other states over exclusive jurisdiction.
The legal clash comes as billions flow through the sector, including nearly $5.7 billion wagered on the World Cup final and $13 million on whether Donald Trump would appear in the champions’ photo.
Kalshi already froze an account tied to White House technical adviser Gabriel Perez over suspected insider-style trading on Trump-related markets, highlighting regulators’ concerns about political and event-based betting.
The broader dispute centers on whether sports and political event contracts should be treated as federally regulated financial products or taxed and policed by states as gambling.