The Trump administration, alongside the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ), has filed lawsuits against Illinois, Arizona, and Connecticut. These lawsuits aim to block the states from implementing regulations on prediction markets, which the federal government argues falls under its exclusive jurisdiction. The legal actions come amid an escalating conflict over the regulation of prediction markets, with the CFTC asserting that state-level restrictions could disrupt federally approved platforms such as Kalshi and Polymarket.