The widespread clash over whether regulation of prediction markets falls under federal or state jurisdiction is moving closer to the U.S. high court. The jurisdictional fight has been building as state regulators and federal authorities stake competing claims over which level of government should oversee event-contract platforms. A Supreme Court ruling would settle the split and define the regulatory boundary for the industry.

A high court decision would end the current patchwork where some platforms face state gaming commissions while others answer to the CFTC, giving operators clarity on licensing and compliance costs.