Add as a preferred source on GoogleCFTC Draws Line Between Gambling and Prediction-Market Contracts
An interim final rule excludes traditional sports wagers and casino games from the swap definition, while a separate proposal would classify several event contracts as swaps.
The Commodity Futures Trading Commission issued an interim final rule Oct. 9 that excludes traditional sports wagers and casino games from the legal definition of a swap, drawing a boundary between conventional gambling and prediction-market derivatives oversight.
The rule will take effect once it is published in the Federal Register. Sports-betting platform wagers and casino gaming products will therefore remain outside the CFTC’s derivatives jurisdiction under the swap definition.
The agency also released a separate proposed rule covering event contracts tied to sports, politics, culture and weather. The proposal would classify those contracts as swaps and establish the CFTC’s exclusive oversight of the derivatives.
Both measures include a 30-day public comment period beginning when they are published in the Federal Register.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.