The Commodity Futures Trading Commission and the United States sued Utah and Attorney General Derek Brown, seeking to stop the state from enforcing gambling restrictions against federally regulated prediction markets. The CFTC argues that federal law gives it exclusive authority over covered event contracts; the court has not ruled on its request. This is the regulator’s 10th lawsuit against a state over such restrictions.
The suit follows Utah’s lawsuit against Kalshi, in which the state alleges Kalshi collected an estimated $30.6 million to $61.2 million in fees from Utah accounts through mid-October and that residents lost about $5.5 million trading. A federal judge previously ruled that federal commodities law did not bar Utah from enforcing its gambling prohibitions against Kalshi’s sports contracts. Kalshi appealed, but its request for an injunction pending appeal was denied.
