Donald Trump Jr. urged Republican state attorneys general at a March event in New Orleans not to pursue prediction markets, saying gambling companies were seeking to protect their existing "monopolies" and that the platforms should be federally regulated rather than governed by individual states, The New York Times reported. The issue has intensified as states challenge Kalshi and Polymarket over whether their event contracts are federally regulated financial products or unlicensed gambling. Trump Jr. advises Kalshi, while 1789 Capital, the venture capital firm with which he is associated, has invested in Polymarket and he has served on its advisory board. Kalshi says his role concerns marketing rather than regulatory matters. The Commodity Futures Trading Commission has pursued legal actions involving nine states to block state regulation, while a coalition of 44 attorneys general says the agency cannot assume control over sports wagering through prediction-market rules. Arizona has filed 20 criminal counts against Kalshi, Massachusetts has issued an injunction restricting its sports contracts, New York has sued the company, and Kentucky has challenged sports event contracts offered by Kalshi and Polymarket. The outcome could determine whether prediction markets operate under one federal framework or face differing state gambling laws, licensing requirements and minimum-age restrictions.