Betting
Betting
Guide
Gambling

The CFTC Takes 5 States To Court Over Prediction Markets & Betting

On April 23, 2026, Wisconsin Attorney General Josh Kaul filed civil suits against five prediction market platforms. They claim that some of these platforms are operating illegally, running unlicensed sports betting operations.

Mitchelle Morgan
M. Morgan
Casino/Slots Specialist
Chad Nagel
Sports Betting & Casino Editor

2 minread

SportsBoom offers honest and impartial bookmaker reviews to help you make informed choices. While we may earn commissions through affiliate links, our content remains independent and free from promotional influence. For more information, see our Content Transparency and How We Review pages.

The CFTC Takes 5 States To Court Over Prediction Markets & Betting

The CFTC Takes 5 States To Court Over Prediction Markets & Betting

About five days later, on April 28, the Commodity Futures Trading Commission (CFTC) responded with a federal lawsuit against Wisconsin state regulators.

The defendants in this case are Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase.

The CFTC Claims

The matter in contention is that prediction markets, platforms where wagers buy and sell contracts related to real-world event outcomes, are federal instruments. The CFTC backs its claim, saying that these platforms operating on registered Designated Contract Markets (DCMs) are protected by the Commodity Exchange Act.

This Act offers stronger consumer protection guidelines, and it also grants the CFTC exclusive jurisdiction over events, contracts, and swaps.

On March 9, 2026, at the FIA Global Cleared Markets Conference in Boca Raton, Florida, the CFTC Chairman, Michael Selig, said, "Well-functioning markets are truth machines. When participants express views on future events—and back those views with capital—they create accountability, transparency, and information." His argument is that since these markets are transparent and accountable, the CFTC must act fast to offer clean federal regulation.

Selig’s goal is to bring these “truth machines” wholly into the light of American law before the patchwork now being experienced at the state level causes them to shut down.

Why States Are Fighting Back

State regulators are pushing back, with Josh Kaul remaining the face of the state-level opposition. On April 24, 2026, he stated that these contracts are “indistinguishable legally or practically” from sports betting. 

And since these platforms are bypassing rules: state licensing, the 21+ age restriction, taxation, and responsible gambling protections, the state must act to stop what it considers unlicensed gambling.

Other licensed sportsbooks, DraftKings and FanDuel, pay a state-wide 12-20% tax on revenue, but prediction market platforms don’t. And so, Wisconsin strongly believes that prediction markets are offering illegal betting under a guise.

It’s Not Just Wisconsin In The Mix

New York, Illinois, Connecticut, and Arizona’s state regulators are also in this war. But now on a federal level. The CFTC claims that these states’ regulators are overstepping their authority, and throughout April 2026, the agency has been applying more pressure through lawsuits that essentially say: "Regulate early to prevent a shutdown.”

The Road Ahead

Since then, there have been a mix of different court rulings. Kalshi won preliminary injunctions in Tennessee and New Jersey. However, states prevailed in preliminary stages in Maryland, Ohio, and Nevada. Iowa is advancing a bill that would impose a $20 million initial licensing fee and a 20% excise tax on prediction market contracts: a first of its kind!

Legal experts claim that this case may stretch 2-3 years, bleeding into 2027 or 2028. The outcomes will determine whether prediction markets will operate under a national federal standard or fall under 50 different state regimes. This could change everything, from revenue streams to consumer access in casinos and sports betting.

Source name: Gambling Insider

  1. URL: https://www.gamblinginsider.com/news/156974/iowa-sf2289-sweeps-dfs-enforcement-sf2470-prediction-markets.
    Description: Shows the Licensing requirement of the bill SF 2470 passed by Iowa.
    Accessed date: 30/04/2026.

Mitchelle Morgan
Mitchelle MorganCasino/Slots Specialist

Professional Background

Mitchelle began her career in 2014, working with established content agencies. Some include Text Experts, Expert Writers, Hubshout, and iWriter. During this period, she developed a strong foundation in SEO writing and created high-volume content across gambling, casino, and betting niches. Her work included casino reviews, game guides, betting tips, and platform comparisons, helping users make informed decisions.

Over the years, she built expertise in writing structured, user-focused content tailored to both beginners and experienced players. Her ability to simplify complex betting concepts and present them in an accessible format became her key strength.

In 2025, Mitchelle expanded her portfolio by joining OnlineCasino.org. Here she contributes detailed casino content, including game breakdowns, platform reviews, and industry-focused articles. Her work continues to focus on clarity, accuracy, and the delivery of value to readers navigating the iGaming space.

What Makes Mitchelle An Expert

Mitchelle’s expertise comes from years of hands-on experience producing iGaming content at scale while maintaining quality and accuracy. She understands user intent, platform features, and betting mechanics, allowing her to create content that is both informative and easy to follow. Her background in SEO ensures that every piece is optimized for visibility without sacrificing readability.

Mitchelle’s Top Tips

  • Understand the platform before you play: Mitchelle advises users to review platform features, payment options, and terms before getting started.
  • Focus on simple strategies first: She recommends starting with straightforward games and strategies to build confidence.
  • Always read bonus terms carefully: Mitchelle highlights the importance of checking wagering requirements and conditions.
  • Set limits and stick to them: She emphasizes responsible play and disciplined budgeting.
  • Choose trusted platforms: Mitchelle suggests using well-reviewed and reputable sites for a safer experience.

Work Experience

  • OnlineCasino.org – iGaming Content Writer (2025–Present)
  • Text Experts – Content Writer (2016–2021)
  • Expert Writer – Content Writer (2020)
  • Hubshout – SEO Content Writer (2019)
  • iWriter – Freelance Writer (2014–2016)

Education

Text Experts – Internal Training & Development

Completed structured training in casino, betting, and gambling analysis in 2016. Gained hands-on experience in content creation, industry research, and betting market fundamentals, building a strong foundation in iGaming content, editorial standards, and SEO-focused writing.

Q&A

What should bettors understand before placing their first bet?

Start with the basics. Learn how odds work, what different markets mean, and how payouts are calculated. Taking time to understand these fundamentals helps avoid costly mistakes early on.

How can bettors manage risk effectively?

Set a clear budget and stick to it. Only wager what you can afford to lose, and avoid increasing stakes to recover losses. Consistent bankroll management is key to staying in control.

What separates consistent bettors from casual ones?

Consistent bettors rely on research, track their bets, and make decisions based on data rather than emotion. They focus on long-term results instead of short-term wins.

What habits should bettors avoid?

Avoid chasing losses, betting impulsively, and following trends without research. These habits often lead to poor decisions and unnecessary risk.

Related Content