The agency claims it has "exclusive jurisdiction" to regulate such contracts. The Commission emphasizes that it recognized event contracts back in 1992. Moreover, following the 2008 financial crisis, Congress explicitly granted the CFTC comprehensive authority over all such contracts. The agency argues that Illinois, Connecticut, and Arizona, along with their gambling regulators, have exceeded their authority. They classify event contracts as "bets" or "sports wagers" instead of asset exchanges. CFTC Chairman Michael Selig has threatened lawsuits against any states challenging the agency's authority. A total of 11 states have filed lawsuits against prediction markets like Kalshi and Polymarket.