Federal vs State
The Litigation Scoreboard
Eleven states are now in active litigation over who regulates prediction markets, and every recent ruling has gone against the platforms. The CFTC won in Arizona (May), but courts ruled against Kalshi in Michigan (June), Nevada (May), New York (July 7), and Washington State (July 21) — where a judge ruled Kalshi likely ran an illegal gambling operation. Michigan is the sharpest live standoff: the ban runs through August 12 with a $500K/day fine, while the CFTC used emergency authority to tell Kalshi to keep operating anyway, creating directly conflicting orders. Minnesota's felony ban takes effect August 1 unless a federal court acts first. This page tracks every case in one place. We update it whenever a case moves.
Every active case, newest development first
Washington Gambling Commission sent Kalshi a notice that offering event-based contracts was not authorized under state law. Kalshi did not comply. AG sought and obtained a preliminary injunction.
No separate CFTC suit filed in Washington. McHale rejected Kalshi's CFTC-preemption argument directly. Injunction terms still being negotiated — both sides asked to submit a compliance plan by the first week of August.
NGCB obtained a May 18, 2026 preliminary injunction requiring Kalshi to geofence sports, elections, and entertainment event contracts from Nevada users. Nevada Supreme Court denied Kalshi's bid to pause the order.
No CFTC suit filed in Nevada. Kalshi is contesting the injunction in Nevada state court while simultaneously facing contempt proceedings for alleged non-compliance.
Sued Kalshi alleging illegal online sports betting. Polymarket and Robinhood counter-sued seeking a preliminary injunction on CFTC-preemption grounds.
Polymarket/Robinhood PI DENIED June 19 by Judge Paul Maloney, who held sports event contracts are likely NOT swaps and that CFTC authority would intrude on traditional state regulation.
Sent Kalshi a cease-and-desist in 2025, alleging sports gambling without a state license. NY is the largest legal sports-betting market in the US.
CFTC sued New York in May 2026. Separately, Kalshi filed its own suit (KalshiEX LLC v. Williams) seeking a PI — denied July 7 by Judge Analisa Torres, who ruled the CEA does not preempt NY gambling law under field, conflict, or impossibility preemption. Kalshi appealed to the Second Circuit the same day.
Sued Kalshi (early June 2026) alleging its sports event contracts are unlicensed online sports betting. NM permits sports betting only at tribal casinos under state-tribal compacts.
CFTC sued New Mexico June 12. Polymarket filed its own independent federal suit July 1 seeking declaratory judgment and a preliminary injunction — after New Mexico rejected two requests to delay enforcement pending the Kalshi case.
State-court suits against Kalshi and Polymarket (May 26) alleging sports contracts are illegal sports betting; seeks disgorgement.
Kalshi counter-sued in federal court the same day; CFTC filed its own complaint May 29 plus a motion to intervene.
SF 4760 signed May 19, 2026 — first state felony ban on prediction-market operators, effective August 1, 2026.
CFTC sued May 20 seeking preliminary injunction before the effective date.
20 misdemeanor counts against Kalshi (March 2026) over election and sports contracts.
CFTC sued; TRO April 10; preliminary injunction May 5 (Judge Liburdi) on three independent preemption grounds: field, conflict, impossibility.
Executive order (May 2026) directing state agencies to pursue enforcement against prediction-market operators.
CFTC sued Illinois in April 2026 to block state enforcement.
Cease-and-desist against Polymarket QCEX issued December 2025, on the day of its US launch.
CFTC sued Connecticut in April 2026, arguing CEA preemption over DCM-listed contracts.
Sued Kalshi, Polymarket, Robinhood, Crypto.com and Coinbase in state court (late April 2026) seeking permanent injunctions.
CFTC counter-sued Wisconsin in federal court April 28 to reaffirm exclusive jurisdiction.
Three things that decide how this ends
CFTC proposed prediction-markets rule published in the Federal Register June 12, 2026 — a 267-page NPRM that would permit most sports event contracts (scores, spreads, win-loss, stats) while banning single-play, injury, officiating, and pre-collegiate contracts. 45-day comment window closes July 27. A formal regulatory regime strengthens every preemption argument the agency is making in court.
President Trump posted public support for CFTC exclusive jurisdiction in late May 2026, reversing his April "casino" comment.
At least 15 state legislatures introduced prediction-market bills in 2026. Massachusetts and New Jersey have similar measures in committee, watching the litigation before moving. With district courts now split — Arizona for the CFTC, Michigan for the state — the first appellate ruling (the Sixth Circuit is positioned to move first after the June 19 Michigan decision) sets the template every other legislature follows or abandons.
Related reading
All prediction-markets news
Every development as it lands: court rulings, platform launches, regulatory shifts.
State guidesAll 50 state pages
Platform availability, tax treatment, and litigation status state by state.
ExplainerWhat is a DCM?
The federal license at the center of every case on this page.