The CFTC sued Kentucky to block state gaming enforcement against Kalshi and Polymarket, extending its campaign to nine states. The federal agency argues the Commodity Exchange Act preempts state gaming law.

The CFTC’s lawsuit comes after Kentucky’s Republican attorney general took aim at Kalshi and Polymarket with separate suits last week.

Kentucky has become the latest battleground in the fight over prediction markets as the CFTC asserts jurisdiction.