IDAHO — Idaho Attorney General Raúl Labrador joins a coalition challenging a federal agency's efforts to claim authority over state gambling laws.
In a press release from Attorney General Labrador's office, the Commodity Futures Trading Commission (CFTC) references laws passed to regulate Wall Street in their claim that this gives them the power to override gambling laws nationwide.
The coalition's mission dates back to January 2025, when two online platforms offered sports betting and promoted it as "events contracts" on federally regulated futures exchanges. In February of 2026, one of the platforms, Kalshi, reported making over $1B just from Super Bowl bets.
The CFTC declined to endorse the legality of the website's actions, with the agency issuing an advisory to the sites in September 2025 that it had never approved such contracts.
According to the press release, the agency "reversed course" late last year and filed a brief siding with the platforms after the state of Nevada sued them. In the case, the CFTC argues that the contracts "qualify as financial instruments called 'swaps,' federal law gives the CFTC exclusive jurisdiction and prevents states from regulating this activity."
The coalition filed an amicus brief, challenging the CFTC's argument. The coalition's argue that federal agencies don't have the authority to interpret the scope of their jurisdiction, especially when seeking to claim powers that expand beyond their declared authority.
Idaho Attorney General Raul Labrador joins the 39-state coalition, which filed the brief supporting the state of Nevada. Attorney General Labrador also commented on the matter:
"States like Idaho that choose to ban sports betting would be prevented from enforcing those bans under the CFTC's theory...An unelected federal agency claims it discovered hidden authority in fifteen-year-old financial reform laws to override state gambling laws nationwide. Congress never granted that power, and Idaho will continue defending our right to regulate gambling as we see fit."
