CFTC sues Kentucky to establish exclusive jurisdiction over predictive markets

The US CFTC sued Kentucky on Tuesday in an attempt to prevent the state from regulating predictive market platforms as illegal sports betting and gambling platforms. Kentucky sued platforms such as Kalshi and Polymarket last week, accusing them of operating unauthorized illegal sports betting and gambling businesses within the state. In its lawsuit submitted to the Eastern District Court of Kentucky, the CFTC stated that Kentucky's attempt to close the federally regulated designated contract market interfered with the federal regulatory system established by Congress for the national swap market. The CFTC advocates exclusive jurisdiction over contracts and predictive market products related to events, and Kentucky is the ninth state sued by the CFTC in a predictive market regulatory dispute.