Prediction markets are fueling a high-stakes brawl between states and federal regulators

Key points

• As prediction markets' volumes grow at a ruthless pace, their businesses are being challenged by states across the country.
• The federal government is fighting a multifront battle to stop the state actions and assert its regulatory authority.
• Sixteen states are involved in legal proceedings against prediction market platform companies, while one state has moved to ban them entirely.
• The Commodity Futures Trading Commission argues it's the only entity that can regulate these platforms, and the agency has sued six states to defend what it describes as its "exclusive jurisdiction" over prediction markets.
• Minnesota became the latest in the government's crosshairs Tuesday, when the commission sued the state after Gov.