State regulations do not apply to federally regulated event contracts, attorneys say

The core dispute surrounding sports event contracts offered by federally regulated designated contract markets (DCMs) is who gets to regulate the products offered by Kalshi, Polymarket, DraftKings and other prediction market companies. The industry’s position is they are federally regulated derivatives that are traded on federally regulated exchanges. The Commodity Exchange Act (CEA) gives the Commodity Futures Trading Commission (CFTC) the explicit jurisdiction over the transactions. So, panelists at the Next Predict Summit in New York made it clear that states shouldn’t be able to apply their gaming laws to ban these contracts, but should the U.S.