The US Commodity Futures Trading Commission has sued Wisconsin in federal court, marking its fifth lawsuit against a US state over prediction market jurisdiction.
The CFTC filed the case on Tuesday after Wisconsin took legal action against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase. The agency said those companies operate CFTC regulated prediction markets.
The lawsuit adds Wisconsin to a growing state level fight over event contracts, sports related markets, and federal oversight. Several states argue that some prediction market products look like illegal betting. However, the CFTC says federally regulated markets fall under its authority.
CFTC Prediction Market Lawsuit Targets Wisconsin
The CFTC said it filed the Wisconsin lawsuit after the state sued the five prediction market platforms. In its statement, the agency said Wisconsin’s action interfered with federally regulated markets.
“States cannot circumvent the clear directive of Congress,” CFTC Chairman Michael Selig said. “Our message to Wisconsin is the same as to New York, Arizona, and others: if you interfere with the operation of federal law in regulating financial markets, we will sue you.”
The CFTC has now sued five US states in this jurisdiction dispute. It sued New York on Friday. Earlier in April, it also filed lawsuits against Arizona, Connecticut, and Illinois.
Wisconsin sued the platforms on Thursday. The state argued that prediction markets offering sports related event contracts amount to illegal betting without state gaming licenses.
That position has created a direct conflict with the CFTC. The agency says these contracts trade on federally regulated markets and fall under federal commodities law.
Wisconsin Prediction Market Case Names Five Platforms
Wisconsin’s lawsuit targeted Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase. The CFTC described the companies as CFTC regulated prediction markets in its statement.
Prediction markets allow users to trade contracts tied to event outcomes. These can include political events, economic data, entertainment results, or sports related outcomes. The legal dispute centers on whether certain contracts fall under state gambling law or federal market regulation.
The CFTC said Wisconsin cannot apply state gambling rules to shut down designated contract markets. In its complaint, the agency argued that it has “exclusive jurisdiction” over these event contracts.
The complaint was filed in a Wisconsin federal court. The Justice Department’s Civil Division joined the filing, according to the agency’s statement.
The case also named Wisconsin Governor Anthony Evers, Wisconsin Attorney General Josh Kaul, the Wisconsin Gaming Division, and its administrator, John Dillett.
Prediction Market Jurisdiction Fight Expands Across US States
The CFTC asked the court to rule that Wisconsin gambling laws do not apply to CFTC regulated designated contract markets. It also asked for a permanent injunction that would stop Wisconsin from taking action against the platforms.
“Wisconsin’s attempt to criminalize and shut down federally regulated markets intrudes on the exclusive federal scheme Congress designed to oversee national swaps markets,” the CFTC wrote in its complaint.
The agency’s broader legal push now covers Wisconsin, New York, Arizona, Connecticut, and Illinois. Each case centers on state action against prediction market platforms.
The state lawsuits focus heavily on sports related event contracts. State authorities have argued that those products require gaming licenses. The platforms and the CFTC have rejected that view.
The CFTC says Congress gave the agency authority over these markets under federal law. The states say their gambling laws still apply when platforms offer sports related contracts to users inside their borders.
Michael Selig Leads CFTC Push on Prediction Markets
The Wisconsin case came one day after Michael Selig appeared on stage at Bitcoin 2026 in Las Vegas on Monday, according to the video source cited with the original report.
Selig’s comments in the Wisconsin statement showed the agency’s position clearly. He said the CFTC would continue suing states that interfere with federal market regulation.
The Wisconsin Department of Justice, the state’s Division of Gaming, and Governor Evers’ office were contacted for comment, according to the original report.
The lawsuit now places Wisconsin inside a wider legal battle over prediction markets, sports contracts, and the boundary between federal commodities oversight and state gambling enforcement.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: April 29, 2026 • 🕓 Last updated: April 29, 2026
