CFTC Challenges New Mexico Over Prediction Market Authority

The complaint, lodged in the U.S. District Court for the District of New Mexico, targets Governor Michelle Lujan Grisham and Attorney General Raúl Torrez. Federal regulators argue that state enforcement efforts against Kalshi—specifically claims that the platform facilitates unlicensed sports betting—directly undermine the Commodity Exchange Act. The agency maintains that it holds exclusive authority over designated contract markets and related derivatives.

New Mexico officials previously moved against Kalshi, alleging the platform bypassed state licensing requirements and failed to enforce the 21-year age minimum for gaming. Attorney General Torrez has defended the state’s stance, asserting that local gaming compacts and regulations are essential to prevent corruption and maintain oversight. Conversely, CFTC Chair Michael Selig described the state's intervention as an attempt to nullify established judicial precedent and federal law. This case joins a growing list of similar conflicts involving the CFTC in states including Wisconsin, Illinois, and Arizona, as federal regulators push to consolidate control over event-based prediction contracts.