"The booming industry of online prediction markets, which allow users to bet on virtually anything from Oscar winners to the weather, has been facing greater scrutiny as companies continue to fight state-led efforts to regulate the fast-growing platforms."
"Illinois introduced legislation earlier this year that would put some of the strictest guardrails in the country around prediction markets, including an effective ban on sports-related trades inside the state."
"The lawsuit is the first by the CFTC to block state gaming regulators from policing operators of prediction markets, asserting federal authority over national swaps markets."
The US government filed a lawsuit against Illinois to halt its attempts to regulate online prediction markets, which are classified as event derivatives. These markets, overseen by the Commodity Futures Trading Commission (CFTC), allow users to bet on various events and are less regulated than traditional betting sites. Illinois proposed legislation imposing strict regulations, including a ban on sports-related trades and age restrictions. The lawsuit marks the CFTC's first effort to assert federal control over prediction markets against state gaming regulations.
Read at www.theguardian.com
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