CFTC Tells Prediction Markets to Drop State Geoblocks in 30 Days

The US Commodity Futures Trading Commission (CFTC) has told federally registered prediction markets to stop blocking users by state within 30 days or explain why they cannot, putting exchanges such as Kalshi, Polymarket and Crypto.com in the middle of a widening fight between federal and state authorities. For background on crypto-funded platforms, stablecoin payments and their risks, see our crypto casino hub.

What the CFTC issued

In press release 9323-26, dated 5 November 2026, the CFTC said it had issued an interpretation of the impartial access requirements that apply to designated contract markets (DCMs). The document relies on Commission Regulation 38.151(b), which requires DCMs to give impartial access to their markets.

Under the interpretation, DCMs must end domestic geographic restrictions that breach those requirements within 30 days. The alternative is to send the CFTC’s Division of Market Oversight an explanation of why compliance is not feasible. According to the release, intermediaries that provide access to those markets are covered by the same 30-day window. Coincub reported that the interpretation takes effect when it is published in the Federal Register, which leaves the exact start of the 30-day clock open.

CFTC Chairman Michael S. Selig said in the official CFTC release: “Geographic access restrictions are inconsistent with those purposes and the Act’s impartial access requirements.”

An interpretation, not a court ruling

Some early coverage described the move as an order requiring exchanges to ignore court orders. The CFTC release does not say that. It does not mention court orders, state regulators or tribes, a point Coincub also made, and Dimers noted that the guidance does not automatically overturn existing injunctions.

The interpretation also does not decide whether sports event contracts are lawful in every state. That question is still being fought in federal and state courts, including the cases covered in our report on Kalshi’s Second Circuit request in New York and Connecticut.

Where geoblocks exist today

Several restrictions are already in place, according to trade reports:

• Kalshi’s sports contracts are blocked in Nevada, Michigan and Washington amid litigation, SportsBettingDime and Coincub reported. Coincub said a Michigan state-court injunction carries a daily fine of US$500,000 for non-compliance.
• In California, Judge Jacqueline Scott Corley granted a preliminary injunction on 4 November barring Kalshi’s sports contracts on tribal lands, according to Coincub. Dimers named the tribal plaintiffs as Blue Lake Rancheria and Chicken Ranch Rancheria.
• iGamingToday reported that Kalshi, Polymarket and Crypto.com restrict access in Michigan.
• DraftKings, FanDuel and Fanatics keep their event contracts out of states where they hold sports betting licences, SportsBettingDime reported, after regulators in Ohio and Massachusetts warned that licences could be at risk.

Responses so far have been cautious. Kalshi said it was evaluating the guidance, Coincub reported. DraftKings chief executive Jason Robins, speaking on an earnings call reported by iGamingToday, said: “I don’t think that’s going to affect anything for us.”

The squeeze on operators

The interpretation leaves exchanges with a difficult choice. Where a state court has ordered a block, lifting it could expose an operator to contempt findings or fines. Where a sportsbook operator runs both a licensed betting product and an event-contract product, lifting a block could put its state betting licence at risk. The CFTC’s explanation route gives operators a way to document those conflicts instead of switching access on, and many are likely to use it.

For states and tribes, the move signals that the federal regulator sees state-by-state blocking as inconsistent with how national futures markets are supposed to work. Expect state attorneys general and tribal gaming groups to respond, either in court or in comments, once the interpretation is published.

Why it matters outside the US

Many prediction-market users fund accounts with crypto, and the US debate is being watched in Asia. Geography-based access controls are a core compliance tool for these platforms worldwide. The CFTC interpretation applies only to domestic US restrictions; it does nothing to change local law elsewhere. In Singapore, for example, online betting is limited to Singapore Pools under the Gambling Control Act 2022, and authorities in Malaysia and Thailand continue to block offshore betting sites.

What to watch next

• Publication in the Federal Register, which may fix the start of the 30-day period.
• How many DCMs file explanations with the Division of Market Oversight instead of lifting blocks.
• Whether states or tribes challenge the interpretation in court.
• Whether courts treat the interpretation as relevant in pending Kalshi cases.

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