"As prediction betting platforms like Kalshi and Polymarket become more popular - allowing users to place bets on everything from election outcomes to the capture of Venezuelan President Nicolás Maduro - state lawmakers have had to grapple with how to regulate them. But putting local restrictions on prediction betting markets may prove difficult, as the federal Commodity Futures Trading Commission (CFTC) is rallying against state-level regulations."
"In an op-ed for The Wall Street Journal, CFTC head Michael Selig argues that state-level regulations "undermine the agency's exclusive jurisdiction over these markets." He adds that these "exchanges aren't the Wild West, as some critics claim, but self-regulatory organizations that are examined and supervised by experienced CFTC staff." The CFTC also filed an amicus brief in support of Crypto.com's appeal as part of a legal battle with the state of Nevada over its prediction market offering."
Nevada filed a lawsuit seeking to stop Kalshi from allowing state residents to place bets until the company obtains an appropriate license. The state alleges Kalshi is operating without a proper license, allows users under 21, and lacks adequate safeguards against wagers by owners, coaches, players, or officials. Nevada also alleges Kalshi fails to communicate potential match fixing or point shaving evidence to gaming regulators. A federal appeals court denied Kalshi's request to block Nevada's actions. The CFTC contends that state-level rules undermine its exclusive jurisdiction and has signaled opposition to local restrictions.
Read at The Verge
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