Trump administration sues three states over attempts to regulate prediction markets

Source: NPR

April 2, 2026 3:54 PM ET


The Trump administration on Thursday filed lawsuits against three states, arguing that the controversial prediction market industry should be solely regulated by the federal government, not by state gambling commissions.

The trio of legal actions against Illinois, Connecticut and Arizona is the furthest Trump officials have gone to try to override state laws and set the rules for a fast-growing industry that has run headlong into thorny questions about insider trading and profiting off war and suffering.

For months, Trump officials have voiced support for the prediction market industry, but experts say the federal suits represent a sharp escalation.

"This is not just telling the court what their views are, but trying to put a thumb on the scale for prediction markets," said Todd Phillips, a Georgia State University professor who focuses on financial regulation.

Read more: https://www.npr.org/2026/04/02/nx-s1-5771635/trump-cftc-kalshi-polymarket-lawsuits