# CFTC Rule, Proposal and Court Rulings Leave State Fight Over Sports Contracts Open By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/32234 Published: 2026-10-15T03:27:10.000Z Updated: 2026-10-15T03:27:10.000Z Section: Regulation > An interim rule would exclude casino-style products from the swap definition, while a separate proposal would add event contracts. Federal appeals courts have reached different conclusions in disputes over state enfor… The CFTC issued an interim final rule to exclude casino-style wagers from the swap definition and proposed including event contracts, while appellate rulings leave unresolved when states may apply gambling laws to sports contracts. On Oct. 9, the CFTC issued an interim final rule that would exclude sportsbook wagers, casino games and other casino-style gambling products from the Commodity Exchange Act’s (CEA) definition of a swap. The rule takes effect upon publication in the Federal Register. In a separate proposal, the CFTC would define swaps to include event contracts based on sports, politics, cultural events and weather. The proposal remains open for public comment. The distinction matters because the CEA gives the CFTC exclusive jurisdiction over swaps traded on designated contract markets, while states have sought to enforce gambling laws against sports contracts. The agency’s [competing rulemakings entered White House review in September](), setting out separate approaches to the boundary between swaps and casino-style products. The U.S. Court of Appeals for the Third Circuit on Apr. 6 upheld preliminary relief blocking New Jersey from enforcing its laws against Kalshi’s sports contracts. It found Kalshi had a reasonable chance of showing that federal law preempts the state rules. The Ninth Circuit reached a different conclusion at the preliminary-injunction stage on Aug. 28. It found Kalshi had not shown that the CEA likely preempts Nevada’s rules and that its sports contracts were likely not swaps. The court affirmed dissolution of the injunction as it applied to sports contracts and remanded the election-contract issue. On Sept. 25, the Sixth Circuit rejected Kalshi’s preemption arguments in disputes involving Ohio and Tennessee. It affirmed the denial of an injunction in Ohio and vacated one in Tennessee. The court decisions leave the application of state gambling laws to sports event contracts unsettled. Comments on both CFTC measures are due within 30 days of their respective Federal Register publication dates. ## Links in this article - [competing rulemakings entered White House review in September](https://www.tokenpost.com/news/regulation/25880)