Prediction markets have moved from niche financial products to one of the most consequential legal battles in US gambling and iGaming.

On this episode of iGaming Daily, host Fernando Noodt and SBC Americas’ Justin Byers are joined by Joshua Sterling, partner at Milbank, to unpack the escalating jurisdictional clash between state regulators and the CFTC.

Sterling argues the Commodity Exchange Act gives the CFTC exclusive jurisdiction over these instruments, framing them as tradable “swaps” distinct from fixed sports bets. 

Cases are progressing through multiple circuit courts, with a New Jersey dispute potentially reaching the Supreme Court by September.

Byers notes how traditional sportsbooks are split; some, like DraftKings and FanDuel, have launched their own prediction products, while others, like BetMGM, have stayed out entirely.

With rulings expected across several circuits in the coming months, clarity may finally be on the horizon.

Watch the full discussion here.