CFTC Sues Wisconsin Over Prediction Markets

On April 28, the CFTC filed a lawsuitagainst the state of Wisconsin and certain state officials seeking declaratory and injunctive relief in response to Wisconsin’s recent enforcement actions against several federally regulated prediction market platforms. The complaint alleges that Wisconsin’s application of its gambling laws to contracts traded on federally regulated exchanges is preempted by the Commodity Exchange Act (CEA).

The complaint centers on the CFTC’s position that Congress granted it exclusive jurisdiction over derivatives markets, including event contracts traded on designated contract markets. According to the CFTC, Wisconsin’s enforcement actions, which allege that prediction market platforms are engaging in unlawful gambling, impermissibly interfere with this federal framework.