The Commodity Futures Trading Commission has filed a federal lawsuit against New Mexico seeking to stop the state from applying its gaming laws to CFTC-registered contract markets. The complaint asks the court to declare that federal law gives the CFTC exclusive authority over event contracts and the prediction markets on which they trade under the Commodity Exchange Act, and to permanently bar New Mexico from enforcing state laws the agency says are preempted. The case follows a state-court lawsuit New Mexico filed against KalshiEX LLC, a CFTC registrant, alleging its prediction market products amount to unlawful online sports betting and seeking to halt its operations in the state and its offering of sports-related event contracts. The CFTC presented the action as part of a broader effort to defend its exclusive jurisdiction over registered prediction markets, citing similar litigation involving Arizona, Connecticut, Illinois, New York, Minnesota, Rhode Island, and Wisconsin.

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