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US lawyers say CFTC may hold an edge in prediction-market dispute

Regulation

US lawyers told a media report that the CFTC may have an advantage in disputes with states over prediction-market contracts, with the issue potentially reaching the Supreme Court. Courts remain divided, while states argue that sports-related contracts amount to unlicensed betting and the CFTC says federal law governs event contracts. A group of 17 senators has also sought to restrict CFTC funding for its lawsuits.

The outcome could shape whether states or the CFTC regulate sports-related prediction contracts.

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Regulation

Ninth Circuit rules in tribal gaming interests' favour in prediction market dispute

It was reported that the Ninth Circuit ruled in favour of tribal gaming interests a day after the Senate failed to advance the CLARITY Act. The outlet said the prediction market dispute remains unresolved at the CFTC.

Two California Tribes, Blue Lake Rancheria and Chicken Ranch Rancheria, persuaded the Ninth Circuit that their IGRA claim against Kalshi is likely to prevail, and the appellate court reversed the district court on the central legal questions. That outcome arrived one day after the Senate declined to move the Digital Asset Market Clarity Act (CLARITY Act) forward. The dispute now goes back before the district court in the Blue Lake matter, while the larger question of the Commodity Futures Trading Commission's (CFTC) authority remains open.

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