Supreme Court to Decide Fate of Prediction Markets by June 2024?

Prediction markets are on a collision course with the Supreme Court, with a ruling expected by June 2024. The legality of prediction markets and the platforms’ foray into sports could be heading to the Supreme Court by next summer. A leading prediction market executive sees a case making it to the High Court before the end of the year. The industry has been locked in legal battles over the last two years with gaming regulators in both state and federal courts.

Flip Pidot, who has worked in the industry for almost two decades and is now chief strategy officer at PredictIt, said it’s just a matter of time before justices take up the issue. “When you have a high-stakes intergovernmental conflict where a federal regulator like the CFTC is opposed in their position to a supermajority of state attorneys general … then that can get the Supreme Court’s attention,” Pidot told Fortune.

Prediction market firms are accused by numerous states of circumventing state gaming laws. They have pushed that issue in court over the last several months. Prediction markets argue that their offerings are different from traditional sports betting. They contend they are regulated solely at the federal level by the Commodity Futures Trading Commission (CFTC). In recent months, the CFTC has attempted to assert its control over the industry. It has filed lawsuits against several states, including against New York in April. Kalshi has appealed two cases to two different circuit courts. If either of those rule against the company, this could create a split at the circuit court level and may bring Supreme Court consideration.