CFTCMarket ManipulationJul 31, 2026
George Santos (former US Representative, NY-3)
The CFTC settled manipulative-trading charges against George Santos, ordering disgorgement of $17,569.98, a $17,500 civil penalty, and a three-year trading ban, resolving the investigation opened after the June 2, 2026 report (enf-doj-santos). The CFTC found Santos manipulated the price of a Kalshi "Who will attend the State of the Union?" event contract between February 12-25, 2026 by posting misleading statements about his attendance plans while holding opposing positions.
CFTCMarket ManipulationJun 2, 2026
George Santos (former US Representative, NY-3)
The Department of Justice opened an investigation into former Rep. George Santos (R-NY) for alleged insider trading on Kalshi, as reported by NPR on June 2, 2026. Santos allegedly posted on X that he planned to attend the State of the Union address, driving up related Kalshi contract odds, then posted a message while Trump was speaking that caused those odds to collapse — netting tens of thousands of dollars in profit. Kalshi detected the suspicious trades, froze Santos's account, and referred the matter to both the CFTC and DOJ, both of which opened investigations. No formal charges had been filed as of the reporting date.
Other StatePolitical MarketsMay 13, 2026
Prediction-market operators (industry-wide, future enforcement)
Minnesota's omnibus public safety bill (SF 4760), including a prediction-markets ban that makes organizing such markets a felony, passed Senate 57-9 and House 100-32 and was sent to Gov. Walz. Grants state regulators authority to issue cease-and-desist orders and seek injunctions; effective Aug. 1, 2026. Minnesota would be the first US state to statutorily outlaw prediction-market exchanges; CFTC suit reportedly under consideration.
CFTCMarket ManipulationApr 23, 2026
Gannon Ken Van Dyke (US Army Special Forces sergeant)
CFTC filed civil complaint (PR 9217-26) in SDNY alleging Van Dyke used classified non-public information about Operation Absolute Resolve (the operation to capture former Venezuelan President Nicolás Maduro) to buy more than 436,000 "Yes" shares on Polymarket's "Maduro Out by January 31, 2026?" contract, netting over $404,000. First CFTC insider-trading enforcement action involving an event contract. SDNY unsealed a parallel criminal indictment the same day.
Other StatePolitical MarketsApr 23, 2026
KalshiEX LLC; QCX LLC d/b/a Polymarket US; Crypto.com Derivatives NA; Robinhood Derivatives LLC; Coinbase Financial Markets
Wisconsin AG Josh Kaul filed three separate civil complaints in Dane County Circuit Court alleging the five operators run unlicensed sports wagering in violation of Wis. Stat. 945.03(1m). The complaints cite sports contracts as ~90% of Kalshi's revenue and seek injunctive relief rather than monetary damages. Wisconsin becomes a new state in the enforcement coalition; CFTC filed a federal preemption suit against Wisconsin five days later.
Other StatePolitical MarketsApr 14, 2026
KalshiEX LLC
Ohio Casino Control Commission issued a notice of intent to impose a $5 million civil penalty for continued unlicensed sports betting, following the original March 2025 cease-and-desist. Largest state monetary action against a prediction-market operator to date.
Other StatePolitical MarketsMar 17, 2026
KalshiEX LLC; Kalshi Trading LLC
Arizona AG Kris Mayes filed 20 misdemeanor counts against Kalshi and its trading affiliate — four counts of election wagering and sixteen counts of unlawful betting. First criminal prosecution of a CFTC-registered DCM. A federal TRO was issued in the District of Arizona on April 10, then converted to a preliminary injunction on May 5, 2026, blocking the criminal case on field/conflict/obstacle preemption grounds.
Other StatePolitical MarketsJan 9, 2026
KalshiEX LLC; QCX LLC d/b/a Polymarket; Crypto.com Derivatives NA
Tennessee Sports Wagering Council ordered immediate halt of sports event contracts, voiding of existing TN user contracts, and refund of all customer funds by January 31, 2026. Kalshi sued the same day and obtained a TRO from the Middle District of Tennessee.
Other StatePolitical MarketsDec 10, 2025
Prediction market operators (industry-wide advisory)
Louisiana Gaming Control Board chair publicly stated that sports event contracts constitute illegal sports wagering under Louisiana law and issued advisory warnings to licensed Louisiana sportsbooks. No cease-and-desist has been issued to date.
Other StatePolitical MarketsDec 2, 2025
KalshiEX LLC; Robinhood Derivatives LLC; Crypto.com Derivatives NA
Connecticut Department of Consumer Protection issued cease-and-desist orders to three operators for unlicensed online gambling, requiring them to halt sports event contracts to CT residents and permit fund withdrawals.
Other StatePolitical MarketsOct 24, 2025
KalshiEX LLC
New York State Gaming Commission issued a cease-and-desist requiring Kalshi to stop offering sports event contracts on tournament winners and player statistics. Kalshi sued the Commission in federal court three days later.
Other StatePolitical MarketsSep 15, 2025
KalshiEX LLC
Massachusetts AG Andrea Joy Campbell filed a civil action in Suffolk Superior Court alleging Kalshi operates an unlicensed sports-wagering venue, accepts wagers from 18-20-year-olds, and lacks compliant responsible-gambling tools. A preliminary injunction blocking Kalshi followed in October 2025.
Other StatePolitical MarketsMay 22, 2025
KalshiEX LLC
Arizona Department of Gaming ordered Kalshi to cease all gambling operations in the state. Served as the administrative predicate for the March 2026 criminal charges brought by the Arizona AG.
Other StatePolitical MarketsApr 7, 2025
KalshiEX LLC; Robinhood Derivatives LLC; Crypto.com Derivatives NA
Maryland Lottery and Gaming Control Commission ordered three operators to halt sports event contracts for MD residents. Became the fifth state to issue simultaneous cease-and-desist letters across multiple platforms.
Other StatePolitical MarketsMar 27, 2025
KalshiEX LLC; Robinhood Derivatives LLC
New Jersey Division of Gaming Enforcement ordered the operators to halt sports event contracts for NJ residents under the NJ Sports Wagering Act. Kalshi sued and obtained a preliminary injunction; the Third Circuit affirmed in April 2026.
Other StatePolitical MarketsMar 15, 2025
KalshiEX LLC
Montana Department of Justice Gambling Control Division issued a cease-and-desist finding probable cause that Kalshi's operations constitute illegal gambling under MCA § 23-5-112. A second letter issued in April 2026 prompted Kalshi to file federal suit against the Montana AG.
Other StatePolitical MarketsMar 4, 2025
KalshiEX LLC
Nevada Gaming Control Board issued a cease-and-desist letter alleging Kalshi's sports event contracts constitute unlicensed sports wagering under NRS Chapter 463. The order triggered Kalshi's first state-preemption lawsuit.
CFTCUnauthorized DerivativesJan 3, 2022
Blockratize, Inc. d/b/a Polymarket.com
CFTC Docket 22-09. Polymarket operated an unregistered event-based binary options market from approximately June 2020. Ordered to wind down non-compliant markets and pay a $1.4 million civil penalty.
