CFTC Sues Wisconsin as Fifth State in Prediction Market War
The CFTC sued Wisconsin on 28 April 2026, making it the fifth state targeted in its prediction market enforcement campaign. Wisconsin AG Josh Kaul had filed three lawsuits against five platforms including Kalshi, Polymarket, and Coinbase.
CFTC sues Wisconsin over prediction market bans
The Commodity Futures Trading Commission (CFTC) sued Wisconsin on 28 April 2026. Wisconsin became the fifth state the CFTC has targeted in its ongoing enforcement campaign against state-level prediction market bans. A prediction market is a regulated trading platform where users buy and sell contracts based on the outcome of future events.
Wisconsin AG filed three suits against five platforms
Wisconsin Attorney General Josh Kaul filed three civil lawsuits on 23 April 2026 in Dane County Circuit Court. The suits named five platforms: Kalshi, Polymarket, Foris Dax Markets (operating as Crypto.com), Robinhood, and Coinbase. Kaul argued these platforms operate illegal gambling services under Wisconsin state law.
"Unlawful actions do not magically become acceptable simply because they are labeled differently.", 28 April 2026. — Josh Kaul, Attorney General, State of Wisconsin
CFTC claims exclusive federal jurisdiction over contracts
The CFTC argues the Commodity Exchange Act gives it exclusive federal jurisdiction over event contracts, including prediction market products. The agency states that state gambling laws cannot override this federal jurisdiction. Federal courts have recently recognized strong preemption arguments in favour of CFTC-regulated markets.
CFTC chair defends federal authority over states
CFTC Chairman Michael Selig published a Wall Street Journal opinion article on 17 February 2026 defending the agency's jurisdiction. The CFTC also issued an enforcement advisory on 25 February 2026 confirming that all trading prohibitions under the Commodity Exchange Act apply to prediction contracts.
"In the past year, American prediction markets have faced a barrage of state-driven lawsuits. The CFTC will not remain passive while overzealous state authorities jeopardize the agency's exclusive jurisdiction over these markets by attempting to impose state-level bans on these innovative products.", 17 February 2026. — Michael Selig, Chairman, CFTC
State attorneys general dispute federal preemption claim
Wisconsin and New York both contest the CFTC's preemption argument. New York Attorney General Letitia James stated that state gambling regulations protect consumers regardless of whether the venue is a prediction market or a casino. State attorneys general in Wisconsin and New York dispute the CFTC's preemption claim in ongoing court proceedings.
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