CFTC sues Rhode Island to block state enforcement against Kalshi and Polymarket
The Commodity Futures Trading Commission sued Rhode Island on May 29, 2026, seeking to block the state's enforcement actions against prediction market platforms. The federal filing came after Rhode Island Attorney General Peter Neronha sued Kalshi and Polymarket in Providence County Superior Court, alleging the CFTC-regulated platforms offer illegal sports betting and evade state licensing requirements. Kalshi had filed a preemptive lawsuit against Rhode Island hours before Neronha's suit, seeking injunctive relief against state officials. The dueling federal and state cases set up a jurisdictional clash over whether federally regulated event contracts can operate in states with restrictive sports wagering laws.
The CFTC's entry gives Kalshi institutional backing it lacked in its earlier Ohio suit. A federal-preemption win arms the agency's parallel challenge against Minnesota and deflects enforcement threats from Wisconsin and Pennsylvania regulators.
The CFTC's direct intervention in Rhode Island follows its parallel suit against Minnesota and arrives alongside Kalshi's own preemption offensive in Ohio, Wisconsin, and Pennsylvania, making federal preemption the dominant legal strategy against state-level prediction-market enforcement.