CFTC sues Utah to shield Kalshi's prediction-market betting

The CFTC has filed a federal lawsuit against Utah to halt the state attorney general's effort to stop Kalshi from offering prediction-market betting where gambling is constitutionally banned. Utah has so far prevailed against Kalshi in district court — a ruling under appeal — and Chair Mike Selig argued event contracts "provide the public with information about the outcome of future events," saying federal authority preempts state law. The agency, which has pursued more than a dozen legal actions in the fight, is now battling 10 states in court.

The suit deepens the jurisdictional dispute the Supreme Court is weighing whether to hear: New Jersey asked the high court to take the case after the Sixth and Eighth Circuits sided with state gambling law while the Third Circuit backed CFTC jurisdiction. Gary Gensler and Chris Dodd filed briefs arguing Dodd-Frank "did not transfer jurisdiction over sports betting from the states to the CFTC," alongside the NFL, 39 states plus D.C. and 145 tribal nations. Kalshi CEO Tarek Mansour has warned state oversight would push the industry offshore, and the CFTC has separately folded event contracts into its swaps rulemaking.