The Commodity Futures Trading Commission has sued Illinois in a major new escalation of the fight over prediction markets, a controversial form of online sports betting available nearly nationwide.
The federal government claims that the state has no right to police federally regulated event-contract platforms as illegal gambling. Illinois sanctions traditional house-banked sports gambling.
The case, filed in federal court in Chicago on April 2, marks the first time the CFTC has sued a state to block it from regulating prediction market operators.
Donald Trump Jr. is associated with Kalshi and Polymarket, two major prediction market operators. Kalshi recently reported raising funds at a $22 billion valuation, according to The Wall Street Journal.
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