Some states want to regulate prediction markets. Should the feds let them?
Updated on: June 24, 2026 / 6:18 PM EDT / CBS News
TL;DR
- The CFTC is taking legal action against nine states that are trying to regulate prediction markets, claiming infringement on federal authority.
- States argue that prediction markets facilitate illegal gambling and sports betting, which should be regulated at the state level.
- The CFTC asserts exclusive jurisdiction over derivative markets, including prediction markets, citing the Dodd-Frank Act.
- Legal experts suggest the dispute over regulatory authority could escalate to the Supreme Court.
- Sports betting accounts for a significant portion of trading volume on prediction markets like Kalshi and Polymarket.