Sports bets on prediction markets ruled to be "swaps," exempt from state laws
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The Bottom Line
Sports bets on prediction markets are now considered "swaps" and are exempt from state gambling laws.
How This Affects You
This reclassification could change the regulatory landscape for online betting, potentially affecting how you can participate in or be regulated for sports prediction markets.
AI Summary
A federal appeals court ruled that New Jersey cannot regulate sports bets on prediction markets, stating the US Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction. This decision upheld a preliminary injunction won by Kalshi, a CFTC-registered designated contract market (DCM), against the New Jersey Division of Gaming Enforcement. The injunction, issued by a district court, was affirmed today in a 2-1 decision by judges at the US Court of Appeals for the 3rd Circuit. The ruling means the CFTC's exclusive jurisdiction over DCMs under the Commodity Exchange Act preempts New Jersey gambling laws. This prevents New Jersey from enforcing its state law against Kalshi's sports-related event contracts.
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Government TransparencyFederal government sues three states over their regulation of prediction markets - AP News
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PoliticsTrump administration sues three states over attempts to regulate prediction markets
The suits are the most ambitious effort to date that the Trump administration has gone to try to override state laws and set the rules for the fast-growing and increasingly divisive betting industry.
Government TransparencyFederal government sues three states for trying to regulate prediction markets
All three states have sent cease and desist orders to such companies accusing them of engaging in illegal online gambling under state law.
Government TransparencyFederal regulator sues 3 states over prediction market restrictions
The Commodity Futures Trading Commission (CFTC) is suing Arizona, Connecticut and Illinois over the states’ efforts to place restrictions on prediction markets operating within their borders, underscoring the escalating fight between state and federal regulators over the platforms. In the trio of lawsuits filed Thursday, the CFTC asked the courts to determine that the agency’s…
Government TransparencyUS sues Arizona, Connecticut, Illinois to stop regulation of prediction markets - Reuters
<a href="https://news.google.com/rss/articles/CBMipwFBVV95cUxOTGttYVp2UTRSMEF5dG1ZenlrRkNmb3lrZWs5OGFzU2ZsWm1Yc0FlTEhqQURnQTktT1F5ZnF6OXpES2J4VXQtajFrdlB3eG9DZFZFeGt0aEVXYzhtMVZkbVZFVl9pbDcxTERvcHduU1QtWUdTSkNrUlphSVNpMzBneTdqaW80X0RFOUJiaXF6dmpBTHdUeWhzTjh4WFRMWVhGR2tkWXdwMA?oc=5" target="_blank">US sues Illinois to stop its regulation of prediction markets</a> <font color="#6f6f6f">Reuters</font>
Government TransparencyLawmakers call for CFTC crackdown on prediction markets
Prediction market bets on the fate of U.S. service members are "morally corrupt and completely unacceptable," one lawmaker said.
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