44 US Attorneys General Challenge CFTC Authority Over Sports Prediction Markets

Attorneys General from 44 states urge CFTC to withdraw proposed rules on sports prediction markets, citing lack of statutory authority and conflict with state jurisdiction.

Woofun AI reports that attorneys general from 44 U.S. states have jointly written to the Commodity Futures Trading Commission (CFTC), asserting that the agency lacks the authority to regulate the sports event prediction market. The letter urges the CFTC to withdraw its current proposed rule and develop regulations compliant with the Commodity Exchange Act and the U.S. Constitution.

The correspondence highlights that sports betting has historically been regulated by individual states, arguing that the CFTC’s proposal expands federal authority beyond its statutory mandate. This move follows ongoing legal disputes between the CFTC and platforms like Kalshi and Polymarket. Recent court rulings remain divided: a Minnesota court temporarily blocked enforcement of a prediction market ban, allowing operations to continue, while a New York court refused to halt local gambling laws against Kalshi. Michigan and Washington have also previously restricted Kalshi from offering sports prediction contracts.