On April 2, 2026, the Commodity Futures Trading Commission (CFTC) sued the state of Illinois 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 Illinois sent cease and desist letters to prediction platforms claiming that the event contracts offered by the platforms violated state gambling laws and licensing requirements. 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, Illinois regulators asserted that it is illegal under state law to run platforms that allow users to “make a wager upon the result of any sport, game, contest, political nomination, appointment, or election…without an [Illinois Gaming Board]-issued license.”  Governor JB Pritzker said the state would “continue to fight for consumer protections.”