The U.S. Commodity Futures Trading Commission sued the state of Wisconsin on Tuesday in the agency’s latest attempt to assert jurisdiction over forecast markets after the state sued multiple platforms.
The CFTC stated in statement that it filed a lawsuit against Wisconsin “in response to the state’s lawsuits against Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase, five prediction markets regulated by the CFTC.”
“States cannot circumvent clear congressional directives,” said CFTC Chairman Michael Selig. “Our message to Wisconsin is the same as it is to New York, Arizona and elsewhere: If you interfere with federal law to regulate financial markets, we will sue you.”
This is the agency’s fifth lawsuit against the U.S. state aimed at halting actions against prediction markets. The CFTC sued New York on Friday, and earlier this month filed lawsuits against Arizona, Connecticut and Illinois after states sued prediction marketplace platforms.
Michael Selig speaks on stage at Bitcoin 2026 in Las Vegas on Monday. Source: YouTube
Wisconsin sued five companies on Thursday and, like many U.S. state regulators, argued that prediction markets that offer contracts for sporting events are illegal bets that require state gaming licenses.
This is a claim that the platforms and the CFTC have rejected in the past, arguing that the contracts are governed only by federal law.
In its latest complaint, filed with the Justice Department’s Civil Division in a Wisconsin federal court, the CFTC argued that it has “exclusive jurisdiction” over event contracts in forecast markets, regulated as designated contract markets under federal law.
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“Wisconsin’s attempt to criminalize and shut down federally regulated markets violates the exclusive federal program Congress is charged with overseeing the nation’s swaps markets,” the CFTC wrote in its complaint.
The agency asked the court to rule that state gaming laws do not apply to designated contract markets regulated by the CFTC and issue a eternal injunction barring Wisconsin from taking action against the prediction markets.
The CFTC complaint also names Wisconsin Governor Anthony Evers, Wisconsin Attorney General Josh Kaul, and the Wisconsin Gaming Division and its administrator, John Dillett.
The Wisconsin Department of Justice, the state Division of Gaming and Governor Evers’ office have been contacted for comment.
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