Prediction Markets, Regulation and the Fight Over What You Can Trade presented by Milbank

In 2024, Milbank secured a landmark victory for Kalshi, overturning a CFTC order that had banned political event contracts and opening the door for Americans to trade on election outcomes for the first time on a regulated exchange. Since then, prediction markets have exploded into a multi-billion-dollar phenomenon, with people trading contracts on everything from sports and politics to pop culture and beyond. Now, the CFTC is proposing a sweeping new regulatory framework, federal preemption battles are playing out against states and tribes nationwide, and courts across the country are wrestling with where to draw the line between trading and gambling. Join Milbank's Derivatives team, led by former CFTC Division Director Josh Sterling and former SEC Chief Litigation Counsel Olivia Choe, for a candid conversation about what comes next. The panel will dig into how the legal battle over event contracts reshaped the regulatory landscape, why the CFTC's proposed rulemaking matters for every platform and market participant, and what the emerging circuit split means for the future of federal oversight. We'll also explore the next wave of financial products being built on this foundation, from sports event contracts to perpetual futures and security futures, and the state and federal enforcement strategies that could slow the momentum or redirect it entirely. Come ready to debate. • Josh Sterling, Partner, Litigation & Arbitration Group, Milbank LLP • Olivia Choe, Partner, Litigation & Arbitration Group, Milbank LLP • Jon Ammons, Special Counsel, Milbank LLP