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CFTC Sues Kentucky Over Prediction Markets Jurisdiction

8/30/2026

30 4 Full Breakdown

Summary

Story summary

The Commodity Futures Trading Commission sued Kentucky, asserting federal jurisdiction over prediction markets and accusing the state of overreach.
Connecticut Attorney General William Tong sued Kalshi, seeking an order to halt its sports-event contracts in the state.

History

Historical Context

After late-1990s Senate bills failed, the Fifth Circuit ruled in November 2002 that the Wire Act did not ban chance-based internet gambling. Congress then attached the Unlawful Internet Gambling Enforcement Act to the SAFE Port Act, signing it on 13 October 2006 (House vote 409-2). Today the CFTC’s suit against Kentucky and Connecticut AG William Tong’s action against Kalshi revive that federal-state clash.

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Story summary

The Commodity Futures Trading Commission sued Kentucky, asserting federal jurisdiction over prediction markets and accusing the state of overreach.
Connecticut Attorney General William Tong sued Kalshi, seeking an order to halt its sports-event contracts in the state.

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