Michigan court rules sports prediction markets outside CFTC jurisdiction

A federal court in Michigan has ruled that sports-related prediction market betting does not fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), Decrypt reported. The U.S. District Court for the Western District of Michigan denied a preliminary injunction sought by Polymarket against state regulators. The case centers on a dispute where Michigan authorities claim Polymarket's sports prediction betting constitutes illegal sports trading, whereas Polymarket argues it should be treated as a swap product supervised by the CFTC at the federal level. In its decision to deny the injunction, the court expressed that Polymarket is unlikely to succeed in the main lawsuit.