Key Takeaways:
The CFTC sued Wisconsin on April 28, 2026, defending Kalshi and Polymarket against state gambling law enforcement. Wisconsin AG Josh Kaul filed 3 lawsuits on April 23 targeting platforms earning over $1 billion annually from sports contracts. The CFTC has now sued 5 states in April 2026, with the conflict expected to reach the U.S. Supreme Court. CFTC Sues Wisconsin to Stop State From Closing Prediction MarketsKaul framed the dispute plainly. “Thinly disguising unlawful conduct doesn’t make it lawful,” he said. “These companies’ alleged facilitation of sports betting in Wisconsin should be shut down.”
The CFTC argues Congress gave it exclusive jurisdiction over derivatives traded on registered exchanges specifically to prevent a state-by-state regulatory patchwork. The agency contends Wisconsin’s suits do exactly what Congress prohibited when it created the CFTC framework decades ago.
Wisconsin’s complaints cite Kalshi’s earnings as evidence of scale. According to court filings, the platform earns more than $1 billion annually from sports contracts, which account for roughly 90% of its revenue.
Coinbase Chief Legal Officer Paul Grewal, along with representatives from Robinhood and Kalshi, has pushed back against state actions, arguing that CFTC registration and federal oversight make state gambling laws inapplicable to their operations.
Until courts resolve the dispute, users in states with active litigation face potential access restrictions, while platforms regulated by the CFTC continue operating under federal authority.
