CFTC sues Kentucky after state’s prediction market lawsuits

The Commodity Futures Trading Commission has sued Kentucky, now the ninth state the regulator is battling in its fight over prediction markets.

The US Commodity Futures Trading Commission filed a lawsuit against Kentucky on Tuesday after the state sued prediction market operators last week, accusing them of operating unlicensed and illegal gambling platforms.

The lawsuit, filed in federal court, seeks to block Kentucky’s legal action against five prediction markets filed on Wednesday last week, calling for declaratory and injunctive relief. It names Kentucky Governor Andrew Beshear, Attorney General Russell Coleman and the Kentucky Horse Racing and Gaming Corporation, among others.

“Kentucky is the latest state attempting to shut down federally-regulated event contracts,” CFTC Chair Mike Selig said in a statement. “As I’ve consistently pledged, the CFTC is firmly committed to maintaining its exclusive jurisdiction over prediction markets, and today’s lawsuit against Kentucky is yet another example of the Commission protecting its federal interests.”

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