CFTC teams up with the Department of Justice to block Arizona from suing prediction market platform Kalshi under gambling laws

DeepFlowTech · 2026-04-09T06:43:48+00:00

The U.S. CFTC and the Department of Justice have filed for an injunction to prevent Arizona from enforcing state gambling laws against the prediction market Kalshi, arguing that its contracts should be federally regulated rather than governed by state law. Arizona has filed criminal charges against Kalshi, with a related court hearing scheduled for April 13.

DeepFlowTech

2026-04-09 06:43:48

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Deep Tide TechFlow news: April 09, according to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice jointly filed a request with the Federal Court on Tuesday evening to seek to block Arizona from enforcing its state gambling laws against prediction market operator Kalshi. The two agencies argue that Kalshi’s contracts, which are linked to real-world events such as sports events and elections, essentially constitute financial derivatives (swaps) and should be governed by the Commodity Exchange Act and the federal regulatory framework, rather than state-level gambling regulations.

Arizona had previously brought criminal charges against Kalshi and is scheduled to hold a hearing on April 13. At present, rulings in courts across the country are divided—the Federal Court of Appeals in New Jersey has leaned toward supporting the federal regulatory position, but other district courts have been more open to the state’s claims.

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