CFTC sues New Mexico to block state restrictions on sports event contracts
The Commodity Futures Trading Commission sued New Mexico on Friday, June 12, 2026, seeking to block the state from enforcing gaming laws against CFTC-regulated prediction market platforms. The suit opposes a state-court action filed last week by New Mexico Attorney General Torrez against Kalshi over sports event contracts. The CFTC said New Mexico is attempting to nullify federal law and decades of judicial precedent by imposing state gaming restrictions on federally regulated event contracts. The filing came two days after the agency proposed new rules broadly permitting sports event contracts and opened a 45-day comment period.
Kalshi must now defend against state-court gambling claims in New Mexico while simultaneously fighting CFTC preemption cases in Rhode Island and Minnesota. Any adverse ruling on federal exclusivity arms state attorneys general with precedent to force geofencing or block operations.
The CFTC's New Mexico filing extends its federal preemption offensive to an eighth state courtroom, joining prior suits and the state-initiated Kalshi litigation.