The Commodity Futures Trading Commission sued Illinois officials over state efforts to regulate prediction markets, as the multi-billion-dollar industry continues to surge despite some efforts to limit the exchanges.
The agency is seeking injunctions against officials including Governor J.B. Pritzker, Attorney General Kwame Raoul, and the Illinois Gaming Board. The filing cites cease-and-desist letters the gaming board has issued to Kalshi, Polymarket and Crypto.com that seek to force the companies to abide by state gambling laws.
The lawsuit is the latest escalation in the legal fight between states and prediction market companies over whether the platforms should be regulated by the CFTC or fall under state jurisdiction. Under the Trump administration, the CFTC has asserted “exclusive jurisdiction” over prediction market platforms.
“Illinois’s attempt to shut down federally regulated DCMs intrudes on the exclusive federal scheme Congress designed to oversee national swaps markets,” the filing states, referencing designated contract markets that are overseen by the CFTC.
The case is US v. Illinois, 26-cv-3659, US District Court, Northern District of Illinois (Chicago).
