States are coming after prediction markets — and setting up a costly legal battle over who gets to regulate them

Prediction markets like Kalshi are regulated in different ways across states. There’s a better way for them to thrive.

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0 ResultsNo Results FoundAuthorsNo results foundSectionsNo results foundColumnsNo results foundOpinion: States are coming after prediction markets — and setting up a costly legal battle over who gets to regulate them

Washington, D.C., should let these markets thrive

Aug. 21, 2026, 12:14 p.m. ET

Prediction markets like Kalshi are regulated in different ways across states. There’s a better way for them to thrive. Photo: Martin Lelievre/Agence France-Presse/Getty Images

Prediction markets have recently drawn the ire of state attorneys general, and that is bad for business and bad for American consumers.

The clearest example: In July, New York Attorney General Letitia James sued Kalshi, calling prediction markets “gambling platforms, plain and simple” and seeking penalties that could reach $36 billion. Arizona’s attorney general filed a 20-count criminal complaint against the same company. Minnesota tried to ban prediction markets outright, until a federal judge blocked the law days before it took effect, ruling that the U.S. Commodity Futures Trading Commission, not the state, has jurisdiction over these types of contracts. According to CFTC Chair Michael Selig, nearly 50 state enforcement actions are now active against prediction-market platforms.

States are coming after prediction markets — and setting up a costly legal battle over who gets to regulate them

Washington, D.C., should let these markets thrive

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