44 State Attorneys General Challenge CFTC Authority Over Sports Prediction Markets

TL;DR

• State Challenge: Forty‑four attorneys general told the CFTC its proposed rule on sports Prediction Markets exceeds federal authority and intrudes on areas states traditionally regulate.
• Industry Concerns: The NFL urged the CFTC to tighten oversight of sports‑related contracts, arguing current proposals do not sufficiently protect game integrity or consumers.
• Nationwide Litigation: Courts in Minnesota, New York, Michigan, and Washington issued conflicting rulings on Kalshi and Polymarket.
  

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A nationwide coalition of attorneys general from 44 states has escalated the fight over sports‑related Prediction Markets, telling the Commodity Futures Trading Commission that the agency is overstepping its authority. Their letter, submitted Monday as the public comment window closed, argues that the CFTC’s proposed rule stretches beyond what the Commodity Exchange Act allows and should be rewritten. The dispute adds fresh tension to an already active legal landscape, where states and federal regulators continue to clash over who controls sports‑event contracts.

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