On April 24, 2026, the Commodity Futures Trading Commission (CFTC) sued the state of New York for trying to regulate prediction markets. The CFTC argued that it has “exclusive jurisdiction” to regulate “Designated Contract Markets (DCMs)”, which include prediction platforms under the Commodity Exchange Act (CEA). In 2025, gaming regulators in the state of New York sent cease and desist letters to prediction platforms claiming that the event contracts offered by the platforms violated state gambling laws and licensing requirements. And in April 2026, regulators filed civil enforcement actions against two entities offering event contracts. State regulators expressed concern about these contracts which they viewed as unlicensed gambling. The CFTC argued that the CEA “provides a comprehensive regulatory framework for the regulation of derivatives transactions in the United States” and gives the CFTC “exclusive jurisdiction” over products like futures, options, and swaps listed on regulated exchanges. However, New York regulators asserted that these sports wagers violate state law.   

Once again, this administration is prioritizing big corporations over consumers and New Yorkers’ best interests. New York’s gambling laws are designed to protect consumers, whether they are placing bets in a prediction market or a casino. When gambling platforms, including prediction markets, violate our laws, we will not hesitate to hold them accountable. We look forward to continuing to defend our laws in court.Attorney General Letitia James and Governor Kathy Hochul