44 State Attorneys General Send Joint Letter to CFTC: Regulatory Authority Over Sports Prediction Markets Does Not Belong to Federal Government

TechFlow reports, on July 29, according to The Block, 44 state attorneys general led by Ohio Attorney General Andy Wilson jointly submitted a public comment letter to the U.S. Commodity Futures Trading Commission (CFTC), pointing out that the CFTC's proposed rules exceed the authority granted by the Commodity Exchange Act, requesting them to redraft new rules compliant with the Constitution. The letter emphasized that sports betting has historically fallen under state-level regulatory jurisdiction, and the federal government has never intervened.

Meanwhile, the NFL also wrote to CFTC Chairman Michael Selig, requesting to curb the expansion of sports prediction markets, believing that the current proposed rules are insufficient to protect the integrity of events. Currently, the legal battle between states and the CFTC continues to heat up: the Minnesota court ruled to suspend enforcement of the state's prediction market ban, allowing Kalshi and Polymarket to continue operations; however, a New York federal judge again refused to stop New York State from enforcing gambling laws against Kalshi, and Michigan and Washington states have also issued temporary injunctions, restricting Kalshi from conducting sports event contract business locally.