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Federal government sues three states over their regulation of prediction markets

The federal government on Thursday sued Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators such as Kalshi and Polymarket. All three states have sent cease and desist orders to such companies accusing them of engaging in illegal online gambling under state law. Arizona also filed criminal charges last month against Kalshi for allegedly violating state gambling laws and a law that makes betting on elections illegal. The Commodity Futures Trading...

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