Gate News reports that on April 2nd, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit in the Chicago Federal Court to prevent the Illinois state government from regulating prediction markets, arguing that the state's actions infringe on the federal government's exclusive authority over the national derivatives market. This lawsuit marks the CFTC's first legal action to stop the Illinois Gaming Board officials from exercising jurisdiction over prediction market operators. The complaint states that the Illinois Gaming Board previously issued cease and desist orders to Kalshi, a prediction market platform, and a certain exchange, alleging that these platforms violated Illinois gambling laws by engaging in unlicensed sports betting activities. The defendants in the lawsuit include officials from the Illinois Gaming Board, Governor J.B. Pritzker, and Attorney General Kwame Raoul, all of whom have not immediately responded to requests for comment.

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