Trump admin sues Utah to save Kalshi from the state's total ban on gambling
Summary
The Trump administration’s Commodity Futures Trading Commission (CFTC) sued Utah to stop the state from enforcing its gambling laws against Kalshi and other CFTC-registered markets. The dispute centers on whether prediction-market event contracts fall under federal regulation and whether that regulation overrides state gambling laws.Key Facts
- Utah’s lawsuit against Kalshi seeks to bar the company from offering contracts on sports, elections, politics, and other events.
- Utah prohibits gambling under state law and its constitution.
- The CFTC says Utah’s enforcement efforts conflict with Congress’s decision to give the agency federal authority over regulated markets.
- Utah previously won a federal court case against Kalshi; the judge ruled that federal law did not prevent Utah from enforcing its anti-gambling laws.
- The CFTC filed its Utah lawsuit in the same federal district court that ruled for Utah in the earlier case.
- Utah is the 10th state sued by the CFTC over state efforts to restrict prediction markets.
- The CFTC has also sued Arizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, New York, Rhode Island, and Wisconsin.
- The legal dispute includes whether prediction-market event contracts qualify as swaps under the Commodity Exchange Act.
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