Controversy

Status:Open

Will US Federal Law Continue to Preempt State Sports-Betting Laws for CFTC-Regulated Sports Event Prediction Markets Through to 2027?

Discuss on

UNLIKELYLIKELY

Claims

Last Updated 2 hours ago

Brenna Bird"Several courts have agreed with the request of this coalition already, that sport-related prediction-market companies should be subject to an individual state’s gambling rules."May 04, 2026

Iowa Attorney General

Donald Trump“It is critically important that the CFTC’s exclusive authority over Prediction Markets is maintained, and that they will thrive.”May 26, 2026

Bloomberglaw

Aleta Arthur Trauger"The court finds that Kalshi is likely to succeed on the merits because sports event contracts are “swaps” and conflict preemption applies."Aug 27, 2026

Justia

Analisa Torres"The Court finds that New York gambling laws as applied to Kalshi’s sports-event contracts are not preempted by the CEA."Aug 27, 2026

Justia

Daniel Wallach“These preliminary victories by Kalshi have all but ensured the elasticity of sports prediction markets at least through the end of calendar 2027 until the issue is decided by the courts or Congress.”Feb 04, 2026

InGame

Gentner Drummond“This is unequivocally gambling, which means it belongs under State authority."May 15, 2026

Oklahoma Attorney General (049)

US Securities and Exchange Commission"State regulators may seek to restrict the availability of certain prediction market products notwithstanding federal oversight, which could require us to geo-fence, modify, or suspend certain markets or limit access in some jurisdictions."Aug 27, 2026

Sec

Phil Weiser“The CFTC should recognize the limits of its power and affirm that states have the expertise, experience and tools to regulate sports betting as they have for more than a century.”Apr 30, 2026

Colorado Attorney General

David J. Porter"Because Kalshi has demonstrated a reasonable chance of success on its argument that the Commodity Exchange Act (“the Act”) preempts otherwise applicable state law, we will affirm."Aug 27, 2026

Justia

Vernon D. Oliver"Kalshi’s sports-event contracts do not constitute “swaps” within the meaning of the Commodity Exchange Act (“CEA”) and are outside of the CFTC’s jurisdiction, and that federal law did not preempt Connecticut’s traditional authority to regulate sports wagering."Aug 27, 2026

Justia

Dave Yost“This is gambling, no matter how they try to dress it up – and that means it belongs under state jurisdiction.”Aug 27, 2026

Ohio Attorney General

Kwame Raoul"States have long held the power to regulate sports gambling and protect their residents from potential harms. I’m calling on the CFTC to recognize states’ authority when it comes to sports betting on prediction markets."Aug 27, 2026

Illinoisattorneygeneral

William Tong"Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticut’s commonsense consumer protection laws."Aug 27, 2026