Which states is the federal government suing?

New York, Connecticut, Arizona, and Illinois. The flagship case is United States and CFTC v. New York (Case No. 1:26-cv-3404, S.D.N.Y.), filed April 24, 2026, with parallel cases against the other three states filed in March and April.

Why isn't California on the list?

Because California's Attorney General has not taken enforcement action against prediction markets. Two factors explain this: California's two failed sports-betting ballot measures in 2022 mean there's no in-state industry to protect from out-of-state competition, and prediction markets are politically popular in California — especially in Los Angeles, where Kalshi has hosted in-person events.

What are the federal lawsuits actually arguing?

That the Commodity Exchange Act gives the CFTC exclusive jurisdiction over event-contract platforms, and that state regulators (including state gaming commissions) are preempted from imposing their own rules on Kalshi, Polymarket, and similar Designated Contract Markets.

Are Kalshi and Polymarket still operating in the sued states?

Yes, while the cases are pending. State cease-and-desist orders remain formally in effect but aren't being actively enforced against retail users. There is some geofencing risk if a state wins an emergency injunction.

Could California join the lawsuits later?

It's possible but unlikely under the current state administration. The Bonta AG office has signaled no interest in enforcement, and California's political dynamics around gambling make aggressive action politically costly.

What if the federal government loses these cases?

Unlikely, but if it happened, it would open the door to state-by-state regulation. California would then have to decide affirmatively whether to allow, restrict, or ban prediction markets. The most likely outcome would be continued operation, possibly with notification-only registration.

Should California traders change anything because of this?

No immediate action needed. California's combination of federal CFTC backing plus zero state opposition makes it one of the most stable jurisdictions in the country. Continue operating with normal accounts on Kalshi, Polymarket, and others.

Politics · 8 min read

The Feds Are Suing 4 States Over Prediction Markets — Here's Why California Isn't One

作者 Catie Di Stefano发布于 2026年4月25日更新于 2026年6月12日

The DOJ and CFTC have sued New York, Connecticut, Arizona, and Illinois for trying to regulate Kalshi and Polymarket. California's absence from that list is the story — and it's why CA traders enjoy uniquely stable access right now.

本页面的部分链接为联盟链接 —— 如您注册，我们可能会获得佣金，对您无任何额外费用。我们如何盈利.

The Feds Are Suing 4 States Over Prediction Markets — Here's Why California Isn't One

Politics

常见问题

Which states is the federal government suing?: New York, Connecticut, Arizona, and Illinois. The flagship case is United States and CFTC v. New York (Case No. 1:26-cv-3404, S.D.N.Y.), filed April 24, 2026, with parallel cases against the other three states filed in March and April.
Why isn't California on the list?: Because California's Attorney General has not taken enforcement action against prediction markets. Two factors explain this: California's two failed sports-betting ballot measures in 2022 mean there's no in-state industry to protect from out-of-state competition, and prediction markets are politically popular in California — especially in Los Angeles, where Kalshi has hosted in-person events.
What are the federal lawsuits actually arguing?: That the Commodity Exchange Act gives the CFTC exclusive jurisdiction over event-contract platforms, and that state regulators (including state gaming commissions) are preempted from imposing their own rules on Kalshi, Polymarket, and similar Designated Contract Markets.
Are Kalshi and Polymarket still operating in the sued states?: Yes, while the cases are pending. State cease-and-desist orders remain formally in effect but aren't being actively enforced against retail users. There is some geofencing risk if a state wins an emergency injunction.
Could California join the lawsuits later?: It's possible but unlikely under the current state administration. The Bonta AG office has signaled no interest in enforcement, and California's political dynamics around gambling make aggressive action politically costly.
What if the federal government loses these cases?: Unlikely, but if it happened, it would open the door to state-by-state regulation. California would then have to decide affirmatively whether to allow, restrict, or ban prediction markets. The most likely outcome would be continued operation, possibly with notification-only registration.
Should California traders change anything because of this?: No immediate action needed. California's combination of federal CFTC backing plus zero state opposition makes it one of the most stable jurisdictions in the country. Continue operating with normal accounts on Kalshi, Polymarket, and others.