The CFTC sues Wisconsin to uphold its regulatory authority over prediction markets.

The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against the state of Wisconsin on Tuesday, seeking to maintain its regulatory authority following the state's lawsuits against several prediction market platforms. In a statement, the CFTC said the lawsuit targets Wisconsin's actions against five prediction markets regulated by the CFTC: Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase. CFTC Chairman Michael Selig stated that states cannot circumvent explicit congressional directives and the implementation of several federal laws regulating financial markets, and the agency will take legal action. This is the fifth such lawsuit filed by the CFTC against various states, following previous lawsuits against New York, Arizona, Connecticut, and Illinois. Wisconsin previously argued that prediction market contracts involving sporting events constitute illegal gambling and require a state gambling license. The CFTC, in conjunction with the U.S. Department of Justice's Civil Division, filed a complaint in federal court in Wisconsin, asserting its exclusive jurisdiction over prediction market event contracts, which serve as the designated contract market. The defendants include Wisconsin Governor Anthony Evers, Attorney General Josh Kaul, and the state's gaming department.