Federal government sues three states over their regulation of prediction markets - AP News

The Trump administration has filed a federal lawsuit against three states over their regulatory restrictions on prediction markets, challenging what it views as unlawful barriers to a growing financial sector. Prediction markets allow people to bet on outcomes of future events—from elections to economic data—and have gained prominence as a tool for price discovery and information aggregation. The suit contends the states' regulations conflict with federal authority and may violate interstate commerce principles. The case reflects the administration's broader push to expand financial innovation and reduce state-level restrictions on derivatives and wagering platforms. The outcome could reshape how prediction markets operate across the country and determine the balance of power between state and federal regulators.