TLDR
- The CFTC sued New Mexico, adding it to a growing list of states facing federal challenges over prediction market laws
- Nevada asked a court to hold Kalshi in contempt for allegedly violating a May injunction
- Crypto.com’s Nadex platform sued New York Attorney General Letitia James over state gambling law enforcement
- A new industry group called the Coalition for Fair Markets sued Kentucky over its 14.25% prediction market tax
- The CFTC argues federal law gives it exclusive authority over event contracts on regulated exchanges
Prediction market legal fights expanded on June 12, 2026, as federal regulators, exchange operators, and state officials filed a series of actions across New York, Kentucky, Nevada, and New Mexico.
The moves mark the latest round in an ongoing dispute between state gambling regulators and federally regulated prediction market platforms.
CFTC Takes on New Mexico
The Commodity Futures Trading Commission filed suit against New Mexico after the state took legal action against Kalshi. Tribal gaming interests had also filed a separate challenge in the state.
The CFTC argues that Congress gave it exclusive authority over event contracts traded on federally regulated exchanges. It says New Mexico cannot apply its gambling laws to those products.
New Mexico is now the ninth state to face a direct CFTC lawsuit. The agency has previously sued Illinois, Arizona, Connecticut, New York, Wisconsin, Minnesota, and Rhode Island. It has also filed supporting briefs in cases in Massachusetts, Ohio, and Nevada.
Nevada Pushes for Contempt Against Kalshi
The Nevada Gaming Control Board asked a state court to hold Kalshi in contempt. The board says Kalshi failed to follow a May 18 court order requiring it to stop offering certain event contracts to people physically located in Nevada.
Investigators made purchases of covered contracts between May 28 and June 1 while inside the state. Those contracts were tied to NBA playoff games, MLB games, and tennis matches.
Nevada says Kalshi’s geofencing measures are not working. The state is asking the court to order disgorgement of profits or daily fines until the company complies.
The Gaming Control Board said in a press release that Kalshi had not followed the court’s order. Nevada considers sports-event contracts to be wagering activity under state law.
Crypto.com’s Nadex Sues New York
Crypto.com’s North American Derivatives Exchange filed suit against New York Attorney General Letitia James and the New York State Gaming Commission.
Nadex is seeking a court declaration that federal law overrides New York’s gambling rules when applied to contracts traded on regulated exchanges.
The company pointed to New York’s existing lawsuits against Gemini and Coinbase as evidence that enforcement against its platform could follow. Nadex argues the CFTC holds exclusive regulatory authority over its products.
New Coalition Takes Aim at Kentucky Tax
A new trade group, the Coalition for Fair Markets, filed suit in Kentucky over a recently passed 14.25% tax on prediction market transaction fees. The coalition includes Kalshi, Nadex, and Polymarket US.
Kentucky charges a lower 9.75% tax on horse track wagers. The coalition argues the higher tax on prediction markets violates the dormant Commerce Clause, equal protection rights, and the First Amendment.
The group says Kentucky’s measures are preempted by federal law. The lawsuit is separate from the Coalition for Prediction Markets, which has previously called Polymarket “offshore.”
