The U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Department of Justice filed lawsuits on Thursday against Illinois, Connecticut, Arizona, and their gaming regulatory agencies, asserting that the federal government has exclusive regulatory authority over prediction markets (event contracts). The CFTC stated that the aforementioned state regulators had previously issued cease-and-desist orders to platforms like Kalshi and Polymarket, claiming that their event contracts violate state gambling laws; however, the CFTC believes that event contracts are designated contract market products regulated under the Commodity Exchange Act, and has requested the court to prohibit the states from continuing to interfere under the guise of "sports betting/gambling." (Cointelegraph)