Wire · regulatory
Ninth Circuit Creates Prediction Markets Split
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Fusion42 · 4 September 2026 · Fusion42 review
The Ninth Circuit held that sports event contracts on prediction markets are not "swaps" under the Commodity Exchange Act and are subject to state gaming laws, conflicting with a prior Third Circuit ruling and increasing regulatory uncertainty ahead of likely Supreme Court review.
This Wire brief sits within Fusion42's coverage of Fintech.
◆ ◆ The Wire takeaway
You must prepare for a fractured US regulatory environment on prediction markets as state gaming laws may apply despite federal swaps rules. Focus on compliance and market access strategy now because your betting products face divergent rules and mounting legal risks.
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1 source · 4 Sep 2026
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