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CFTC aims to classify event contracts as swaps while excluding casino games

Unchained reports the CFTC on October 9 proposed adding event contracts, including those based on sports, politics, cultural and weather events, to its regulatory definition of a swap at 17 CFR 1.3, while issuing a companion interim final rule keeping sportsbook and casino games outside that definition. CFTC Chairman Michael S. Selig said event contracts are commodity derivatives within the agency exclusive jurisdiction under the Commodity Exchange Act, and comments on the proposal are due 30 days after Federal Register publication.

CFTC seeks to define event contracts as swaps

The CFTC proposed on October 9 to add event contracts to the regulatory definition of a swap in 17 CFR 1.3, according to Unchained. The proposal covers contracts tied to sports, politics, cultural events and weather.

The proposed change would explicitly place those contracts within the swap definition. It remains a proposal, with comments due 30 days after publication in the Federal Register, Unchained reported.

A separate treatment for sportsbooks and casinos

Alongside the proposal, the CFTC issued a companion interim final rule excluding sportsbook and casino games from that definition, according to Unchained. The two measures distinguish event contracts—including sports-based contracts—from sportsbook and casino games.

CFTC Chairman Michael S. Selig said event contracts are commodity derivatives subject to the agency’s exclusive jurisdiction under the Commodity Exchange Act, Unchained reported. That position underpins the agency’s proposed treatment of prediction-market contracts.

What it means for prediction markets

  • Regulatory classification is the central issue: The proposal would expressly include event contracts in the swap definition at 17 CFR 1.3, covering sports, politics, cultural events and weather.
  • The measures have different procedural statuses: The event-contract change is proposed, while the sportsbook and casino exclusion was issued as an interim final rule.
  • The comment deadline depends on publication: Responses are due 30 days after Federal Register publication, rather than 30 days after the October 9 proposal.
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    Unchainedunchainedcrypto.com
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