Federal government sues three states for trying to regulate prediction markets

## Summary
The federal government on Thursday sued Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators such as Kalshi and Polymarket.

All three states have sent cease and desist orders to such companies accusing them of engaging in illegal online gambling under state law. Arizona also filed criminal charges last month against Kalshi for allegedly violating state gambling laws and a law that makes betting on elections illegal.

WATCH: Prediction markets, pardons spark questions over who's profiting from Trump's presidency

The Commodity Futures Trading Commission contends in court filings that it, not the states, regulates these companies.

## Article Content
The federal government on Thursday sued Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators such as Kalshi and Polymarket.

All three states have sent cease and desist orders to such companies accusing them of engaging in illegal online gambling under state law. Arizona also filed criminal charges last month against Kalshi for allegedly violating state gambling laws and a law that makes betting on elections illegal.

WATCH: Prediction markets, pardons spark questions over who's profiting from Trump's presidency

The Commodity Futures Trading Commission contends in court filings that it, not the states, regulates these companies.

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### Expert Commentary
This article covers arizona, prediction, kalshi topics. Readability: Flesch-Kincaid grade 0.0. Word count: 99.