TechFlow News, April 2: According to Reuters, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit on Thursday in the U.S. District Court for the Northern District of Illinois, seeking to block Illinois from regulating prediction markets. The CFTC argues that Illinois’s actions infringe upon the federal government’s exclusive regulatory authority over nationwide swap markets. This lawsuit marks the CFTC’s first legal action to prevent state-level gambling regulators from asserting jurisdiction over prediction market operators.
The suit stems from a cease-and-desist order issued by the Illinois Gaming Board against Kalshi, Polymarket, and Crypto.com, alleging that these platforms violated Illinois gambling laws by engaging in unlicensed sports betting activities. Defendants named in the lawsuit include officials from the Illinois Gaming Board, Governor J.B. Pritzker, and Attorney General Kwame Raoul; none responded immediately to requests for comment.
