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Federal government urges states to stand down in prediction market dispute

After several states sued to block federally regulated prediction markets, federal officials are urging states to stand down.

Published Apr 6, 2026, 3:38 PM EDT | WFMZZ

The federal government is telling states to back off attempts to regulate prediction markets after several states filed legal actions to block federally regulated markets from operating in their jurisdictions. The dispute raises the prospect of a federal-state showdown over which level of government has authority to oversee prediction markets.