Share on LinkedInShare on LinkedIn

ARTICLE · 03 SEPTEMBER 2026

Prediction Markets: Insights On Event Contracts, Regulation, Litigation And Market Growth

Prediction markets have rapidly evolved from a niche financial sector into one of the fastest-growing areas of the derivatives industry, attracting institutional investors, exchanges, and heightened regulatory scrutiny. As the CFTC, courts, and industry participants work to define the regulatory framework for this emerging asset class, questions around market structure, customer protection, and risk management have moved to the forefront. Katten's Financial Markets and Regulation team provides cutting-edge

United StatesFinance and Banking
Daniel J. Davis
Daniel J. Davis
Carl E. Kennedy
Carl E. Kennedy
Matthew Kluchenek
Matthew Kluchenek
Author LinkedIn connections

Prediction markets have evolved from a niche corner of the financial system into one of the fastest-growing and most closely watched sectors in the derivatives industry. As trading volumes surge, institutional investors, exchanges, brokerages and policymakers are all racing to understand what this growth means for market structure, regulation and risk. Katten's Financial Markets and Regulation team sits at the center of this rapidly developing space, having advised on the listing of the first sports event contracts on a federally regulated exchange, testified before Congress on customer protection and market integrity, and published in-depth analysis on the economic functions, opportunities and regulatory questions shaping this emerging asset class. This Resource Center brings together Katten's latest thought leadership, regulatory updates and practical insights to help clients and market participants stay ahead as the Commodity Futures Trading Commission (CFTC), courts and industry continue to define the future of prediction markets.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from