Federal vs State
The Litigation Scoreboard
Seven states are in active litigation over who regulates prediction markets: the CFTC under the Commodity Exchange Act, or state gaming authorities under traditional gambling law. This page tracks every case in one place — status, court, the latest development, and what it means for platform access. We update it whenever a case moves.
Every active case, newest development first
State-court suits against Kalshi and Polymarket (May 26) alleging sports contracts are illegal sports betting; seeks disgorgement.
Kalshi counter-sued in federal court the same day; CFTC filed its own complaint May 29 plus a motion to intervene.
Alleged Coinbase and Gemini violated state gambling laws by listing event contracts. Polymarket QCEX blocks NY residents.
CFTC sued New York in May 2026, days after the Coinbase/Gemini action.
SF 4760 signed May 19, 2026 — first state felony ban on prediction-market operators, effective August 1, 2026.
CFTC sued May 20 seeking preliminary injunction before the effective date.
20 misdemeanor counts against Kalshi (March 2026) over election and sports contracts.
CFTC sued; TRO April 10; preliminary injunction May 5 (Judge Liburdi) on three independent preemption grounds: field, conflict, impossibility.
Executive order (May 2026) directing state agencies to pursue enforcement against prediction-market operators.
CFTC sued Illinois in April 2026 to block state enforcement.
Cease-and-desist against Polymarket QCEX issued December 2025, on the day of its US launch.
CFTC sued Connecticut in April 2026, arguing CEA preemption over DCM-listed contracts.
Sued Kalshi, Polymarket, Robinhood, Crypto.com and Coinbase in state court (late April 2026) seeking permanent injunctions.
CFTC counter-sued Wisconsin in federal court April 28 to reaffirm exclusive jurisdiction.
Three things that decide how this ends
CFTC proposed prediction-markets rule under OMB/OIRA review since May 26, 2026. Federal Register publication expected late summer or early fall. A formal regulatory regime strengthens every preemption argument the agency is making in court.
President Trump posted public support for CFTC exclusive jurisdiction in late May 2026, reversing his April "casino" comment.
At least 15 state legislatures introduced prediction-market bills in 2026. Massachusetts and New Jersey have similar measures in committee, watching the litigation before moving. The first appellate ruling — most likely the Ninth Circuit reviewing Arizona — sets the template every other legislature follows or abandons.
Related reading
All prediction-markets news
Every development as it lands: court rulings, platform launches, regulatory shifts.
State guidesAll 50 state pages
Platform availability, tax treatment, and litigation status state by state.
ExplainerWhat is a DCM?
The federal license at the center of every case on this page.