CFTC and DOJ sue Wisconsin, escalating federal fight over prediction-market lawsuits against five platforms

The Commodity Futures Trading Commission filed a federal lawsuit alongside the U.S. Department of Justice in the Eastern District of Wisconsin, arguing the state exceeded its authority by bringing actions against prediction‑market platforms; the filing makes Wisconsin the fifth state targeted in the CFTC’s recent enforcement campaign ^{[1] [2]}.

Wisconsin Attorney General Josh Kaul had initiated three lawsuits against five platforms — Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase — alleging unauthorized gambling or similar conduct, prompting the federal challenge ^{[3] [2]}.

CFTC Chairman Michael Selig has said federal law grants the agency “exclusive jurisdiction” over event‑contract prediction markets, and the agency’s actions follow similar clashes in New York, Arizona, Connecticut and Illinois as it defends that authority ^{[3] [4] [1]}.

The dispute highlights escalating federal‑state tensions over oversight of prediction markets and will be resolved through litigation in federal court ^{[1] [3]}.