CFTC Pulls New Mexico Into Prediction Markets Battle

The Commodity Futures Trading Commission sued New Mexico Governor Michelle Lujan Grisham, state Attorney General Raúl Torrez and members of the New Mexico Gaming Control Board in federal court, asking the court to block the state from applying its gaming laws to CFTC-registered contract markets.

New Mexico had sued prediction market platform Kalshi on June 4, accusing it of offering unlicensed sports betting and allowing users aged 18 to 20 to trade despite a 21 minimum gambling age. In its complaint the CFTC argues event contracts are “swaps” under federal commodities law and that Kalshi operates as a Designated Contract Market subject to the agency’s exclusive jurisdiction.

The regulator asked the court to declare state laws that would reach transactions on CFTC-regulated DCMs invalid and to enter a permanent injunction barring state enforcement against prediction market platforms.

United States, New Mexico

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