Prediction Markets' Regulatory Limbo: A Perfect Storm for Disruption The Ninth Circuit Court of Appeals has dealt a significant blow to prediction markets platforms by rejecting their requests for injunctive relief against Nevada's Gaming Control Board.
This decision not only sends shockwaves through the industry but also sets the stage for a likely showdown at the Supreme Court.
At stake is the definition of what constitutes a "derivative" under federal law and which authority has jurisdiction over prediction markets: state gaming regulators or the Commodity Futures Trading Commission (CFTC).