CFTC Sues New Mexico Over Sports Prediction Market Crackdown

The US agency charged with overseeing derivatives trading sued New Mexico, adding to a slew of Democratic-led states the federal regulator has brought to court in its campaign to assert exclusive authority over the burgeoning prediction market industry.

New Mexico and other states are invading upon the small Wall Street regulator’s “exclusive jurisdiction” over prediction markets with attempts to regulate them, according to the US Commodity Futures Trading Commission’s complaint filed Friday in the US District Court for the District of New Mexico.

The CFTC, with the backing of federal prosecutors, similarly sued Minnesota, Wisconsin, New York, ...