The US Commodity Futures Trading Commission (CFTC) has given registered prediction-market exchanges 30 days to remove geographic restrictions it considers inconsistent with federal impartial-access requirements, or submit a written explanation to the agency. The guidance applies to designated contract markets under Commission Regulation 38.151(b).
The directive creates a potential compliance conflict for platforms already subject to state court orders requiring them to geofence particular jurisdictions. Kalshi, Polymarket and Crypto.com have withdrawn sports event contracts from some states following legal challenges, while the Ninth Circuit recently ordered Kalshi to block contracts on tribal lands in California.
Implications for operators and affiliates
The guidance does not resolve the underlying federal-versus-state jurisdiction dispute, and the CFTC has not specified penalties or a universal method for handling conflicting court orders. Prediction-market operators and their marketing partners should continue to assess availability state by state rather than assume the federal guidance removes local restrictions. DraftKings CEO Jason Robins said the directive was unlikely to affect his company’s current operations.