(AsiaGameHub) –   The Commodity Futures Trading Commission (CFTC) has announced increased determination in its legal and regulatory efforts to counter state-level actions concerning the regulation of controversial prediction markets.

Minnesota is now the CFTC’s next focal point, as highlighted by CFTC Chair Michael Sivilg. The commission will closely monitor the state due to proposed legislation that seeks both to regulate and ban certain prediction markets, according to Semafor.

In late April, Minnesota became the latest U.S. state to move toward a ban on prediction markets, drawing criticism from the CFTC. This development followed a contentious statement by Kalshi, which claimed a state legislator had used event contract applications to predict outcomes in his own political campaign.

Sixth on the List

So far, the CFTC has initiated five lawsuits against five states that have attempted to restrict prediction markets. These states include Connecticut, Arizona, New York, Illinois, and Wisconsin.

This week, Selig commended a district judge’s decision to block Arizona’s attempt to challenge prediction market operator Kalshi, emphasizing that it affirmed the federal regulator’s authority over such markets.

Selig has also seen other favorable court rulings. Last month, an appeals court in New Jersey sided with Kalshi, and prior to that, a judge in Tennessee granted Kalshi a preliminary injunction against state restrictions.

Supreme Court Expected to Intervene

Industry stakeholders are now watching the Supreme Court closely, awaiting its potential involvement in determining whether it will rule on the ultimate jurisdiction over prediction market regulation.

Currently, the CFTC oversees the regulation of prediction markets, which are permitted across all 50 states. However, critics argue this system provides prediction platforms with an unfair advantage over traditional sportsbooks.

Additionally, this regulatory framework allows prediction market operators to enter jurisdictions where sports betting remains illegal.