Timeline
- 7.5
CFTC Sues Utah to Block Prediction-Market Enforcement
The US Commodity Futures Trading Commission filed suit in the US District Court for the District of Utah against the State of Utah and Attorney General Derek Brown, seeking to block state enforcement against prediction-market operators. The Monday filing came a week after Utah announced legal action against Kalshi and its affiliates to recover up to $60 million in profits it alleges were obtained illegally. The suit directly contests whether a state may apply its gambling laws to platforms the CFTC has authorized, and a Kalshi spokesperson, Jacki McGavick, said no single state should have a veto over a national derivatives market overseen by the CFTC. The CFTC argues that Utah's action intrudes on what it calls Congress's exclusive federal scheme for commodity derivatives. The CFTC's complaint states that the event contracts targeted by Utah are "swaps" under the Commodity Exchange Act and that the exchanges offering them are CFTC-regulated Designated Contract Markets. It argues Utah's efforts to stop a CFTC-regulated DCM from offering CFTC-approved products bypass congressional intent to federally preempt state law.
- 8.0
NBA reaches prediction market partnership agreements with Kalshi and Polymarket
The NBA announced Monday that Kalshi and Polymarket will become its preferred prediction-market platforms, able to settle NBA-related markets using official league data supplied by Sportradar, use NBA and team marks, and advertise during game broadcasts, while the league retains approval rights over which NBA markets they may list. The league also said it signed a memorandum of understanding with the CFTC, expanded its existing DraftKings deal to cover prediction markets, and expects similar arrangements with FanDuel and Fanatics in the coming weeks. The deals give the two platforms official data, league branding and broadcast exposure tied to NBA markets, a level of endorsement a major North American league had not previously extended to prediction-market exchanges. The accompanying CFTC information-sharing agreement adds a regulatory-legitimacy channel alongside the industry's ongoing court fight over federal versus state oversight. Under the integrity provisions, NBA players, team and league personnel are barred from trading NBA event contracts, and Kalshi and Polymarket must help the league identify suspicious trading, prevent insider trading and share data in investigations. CFTC Chairman Michael S. Selig said the NBA agreement would strengthen information sharing on insider trading and fraud; the NBA joins Major League Baseball and the National Hockey League in establishing such arrangements with the regulator.