The Commodity Futures Trading Commission (CFTC) has granted permission to ProphetX to operate a prediction market, making it the first sports-native prediction platform in...
CFTC files lawsuit against New Mexico in predictions battle
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the state of New Mexico in order to stop it from applying state gambling laws to federally regulated prediction markets.
The court case comes just days after New Mexico Attorney General Raul Torrez filed a lawsuit against Kalshi, arguing that the operator had been offering illegal sports betting to state citizens. The CFTC responded by launching its own case on June 12 in the U.S. District Court for the District of New Mexico, naming Governor Michelle Lujan Grisham, AG Raul Torrez, and New Mexico Gaming Control Board members as defendants.
The lawsuit states:
“The CFTC has clear and longstanding exclusive jurisdiction to regulate event contracts and the prediction markets on which they trade under the Commodity Exchange Act, which preempts state laws purporting to regulate designated contract markets.”
CFTC Chairman Michael Selig further added:
“New Mexico is the latest state seeking to nullify black-letter law and decades of judicial precedent by imposing state gaming laws on federally regulated derivatives exchanges subject to the CFTC’s exclusive jurisdiction. As I’ve said repeatedly, the CFTC has the expertise and responsibility to protect its exclusive jurisdiction over commodity derivatives, and that’s exactly what we’ll continue to do.”
The commission has also sued Minnesota, Wisconsin, New York, Arizona, Rhode Island, Illinois, and Connecticut in similar cases, making New Mexico the 8th U.S. state targeted by the CFTC in connection with prediction market laws.
Kalshi has signed a sponsorship deal with Argentina’s football federation (AFA) to serve as an official sponsor of the national team during the FIFA World Cup 2026.
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