# CFTC Proposes Separating Prediction Markets From Casino Gambling

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/29734
Published: 2026-10-11T07:58:18.000Z
Updated: 2026-10-11T07:58:18.000Z
Section: Regulation

> The measures would classify event contracts as swaps while excluding sportsbook wagers and casino games from the definition.

The Commodity Futures Trading Commission proposed rules that would classify prediction-market event contracts as swaps while excluding traditional casino gambling from the same federal definition.

The first proposal covers contracts tied to sports, politics, cultural events and weather. The CFTC said the products are financial instruments that fall under its authority through the Commodity Exchange Act.

The second proposal would clarify that sportsbook wagers and casino games are not swaps or derivatives, leaving those products outside the agency’s regulatory remit.

Both proposals filed Friday include 30-day comment periods. The measures come as states challenge prediction-market operators, including Kalshi and Polymarket, over whether contracts tied to events such as sports should be regulated under state gambling laws.

The dispute has produced conflicting court outcomes. The 6th U.S. Circuit Court of Appeals sided with Ohio and Tennessee in a case involving Kalshi’s sports contracts, while an earlier 3rd Circuit ruling allowed the company to operate in New Jersey while its appeal continues.

The proposals could sharpen the jurisdictional dispute between federal regulators and states and help frame a potential Supreme Court case. The CFTC’s comment periods will remain open for 30 days.