Legal Ambiguity Surrounds Sports Prediction Markets Amid CFTC Intervention

Investment bank TD Cowen has weighed in on the ongoing legal disputes involving sports prediction markets. According to NS3.AI, state governments maintain a strong legal position despite the intervention of the Commodity Futures Trading Commission (CFTC). The core of the debate is whether Crypto.com's sports event contracts are considered unlicensed gambling under Nevada law or if they fall under federally regulated derivatives as per the CFTC. The case is currently on appeal and could potentially leave regulatory ambiguity for prediction markets unresolved for several years, particularly if it advances to the Supreme Court.