CFTC Excludes Casino-Style Wagers From the Swap Definition

The Commodity Futures Trading Commission excluded casino-style wagers from the definition of a swap, preserving room for prediction-market activity without changing existing compliance obligations.

The agency bypassed a proposal that would have affected how these wagers were treated under derivatives rules. The decision keeps casino-style contracts outside the swap definition while leaving the broader compliance framework intact.

The move matters for prediction markets, which use contracts tied to outcomes rather than traditional financial assets. The CFTC’s action avoids applying the swap designation to casino-style wagers, but it does not remove existing regulatory requirements.

The decision leaves current compliance obligations in place as prediction-market activity continues to develop in the United States.