A new court filing contends that regulating wagers on future events is the sole domain of the Commodity Futures Trading Commission, effectively challenging Arizona’s attempt to impose its own rules. The dispute illustrates a growing national conflict over the extent of state authority versus federal power in overseen financial and betting markets.

Kalshi, known for its so-called “prediction market,” now faces scrutiny over accusations that its platform constitutes illegal gambling. Washington’s attorney general says it violates state antigambling laws, and Arizona has filed criminal charges as well, highlighting growing regulatory pressures around online market-based betting.

Prediction markets have soared to $28 billion in value, driven by a surge in wagers on sports such as the NFL and NBA. As bets skyrocket—more than $6 billion in December alone—states are challenging federal control over the gambling industry.

While the U.S. government ceased operations on Wednesday, stock markets soared, with one benchmark index breaking its previous record. Traders now predict the shutdown will stretch about two weeks, reflecting an average duration seen in past governmental stoppages.

Donald Trump Jr. has embarked on a venture advising companies, expanding his reach well beyond the political stage. From mixed martial arts to drone technology, he is paid to provide counsel in a variety of industries.