CFTC says casino bets aren’t swaps, but sports contracts are
The regulator wants event contracts on sport, politics & weather all classed as swaps under its sole jurisdiction.
The hit
The CFTC confirmed late on Friday that casino-style gambling products, sports bets included, don’t count as swaps. The move comes as the commission, which oversees yes/no exchanges, pushes a separate plan to classify sports event contracts as swaps it alone regulates, according to Casino.org.
Why it matters
The split matters because swaps fall under exclusive federal oversight, while sportsbooks answer to state regulators. State regulators argue sports derivatives don’t meet the standard of a swap & say the law isn’t meant to strip states of their power over gaming. The CFTC says it, not the states, has regulatory purview over swaps, reigniting the fight over who controls sports betting in America.
The record
| Rule issued | Interim Final Rule codified by the CFTC on a Friday afternoon |
|---|---|
| Comment period | 30 days, opened by the CFTC |
| CFTC official quoted | Selig, who says event contracts fall under the agency’s “exclusive jurisdiction” |
| Contracts targeted | Sports-, politics-, cultural- & weather-related event contracts, per the CFTC |
What happens next
Watch for the Interim Final Rule’s comment period to close, according to the CFTC.
Sources: CFTC Codifies Rule Stating Casino-Style Wagers, Including Sports Bets, Aren’t Swaps
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