CFTC and DOJ sue Kentucky to block state limits on federally regulated prediction markets
The Commodity Futures Trading Commission and the U.S. Department of Justice sued Kentucky on June 23, 2026, seeking to stop the state from applying its laws to federally regulated prediction markets and event contracts. The lawsuit argues Kentucky’s enforcement actions and new statutes targeting prediction market operators conflict with the CFTC’s exclusive authority over derivatives under the Commodity Exchange Act. The case was filed in the U.S. District Court for the Eastern District of Kentucky.