CFTC Sues New Mexico to Defend Federal Exclusive Jurisdiction Over Prediction Markets

According to Cointelegraph, on June 13 local time, the U.S. Commodity Futures Trading Commission (CFTC) filed a federal lawsuit against the Governor, Attorney General, and members of the New Mexico Gaming Control Board, seeking to block the state from applying its gaming laws to CFTC-registered contract markets. Earlier, on June 4, New Mexico sued prediction market platform Kalshi, accusing it of offering sports betting services to residents without proper licensing and allowing users aged 18 to 20 to access the platform—below the state’s legal gambling age of 21. The CFTC contends that the relevant contracts fall under the definition of “swaps” under federal commodity law, granting the CFTC exclusive jurisdiction over such contract markets. New Mexico is the eighth state against which the CFTC has filed suit over jurisdictional disputes concerning prediction markets; prior lawsuits have been brought against Rhode Island, Wisconsin, Minnesota, New York, Arizona, Connecticut, and Illinois.