TD Cowen: States have upper hand in prediction market legal battles

State governments hold a more favorable legal position in regulatory disputes over sports-based prediction markets, even though the U.S. Commodity Futures Trading Commission (CFTC) has sided with the platforms, according to an analysis by U.S. investment bank TD Cowen. The Block reports that TD Cowen's view is based on the historical precedent of states having the authority to regulate sports betting. The bank noted that the ongoing lawsuit between Nevada and Crypto.com is currently under appeal and could potentially reach the Supreme Court. In that event, TD Cowen projects that regulatory uncertainty for prediction markets could persist for years.