DOJ and CFTC Challenge Arkansas Over Kalshi and Prediction Market Regulation

DOJ and CFTC sue Arkansas over prediction market restrictions, arguing that federal law gives the CFTC authority to regulate event contracts. The US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have filed a lawsuit against Arkansas. The move came in response to the state’s efforts to restrict prediction markets. According to the federal agencies, states cannot use local gambling laws to regulate event contracts offered on CFTC-regulated platforms like Kalshi. This adds another layer of complexity to the ongoing legal disputes between state authorities and prediction markets.