On April 28, 2026, the Commodity Futures Trading Commission (CFTC) sued the state of Wisconsin 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). The CFTC action was in response to civil enforcement actions that Wisconsin filed against five entities offering event contracts in April 2026 arguing that the entities were illegally facilitating sports betting on their prediction market platforms. Wisconsin Attorney General Josh Kaul stated, “These companies have chosen to flout Wisconsin law by thinly disguising the sports betting that they facilitate through what are called event contracts.” The CFTC Suit 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, Wisconsin state officials have asserted that these events wagers violate state gambling law.