The US CFTC plans to define event contracts as swaps, excluding casino gambling products

The US Commodity Futures Trading Commission (CFTC) has proposed two regulatory plans to define sports, political, cultural, and weather event contracts as swaps and exclude traditional casino gambling. CFTC Chairman Michael Selig stated that the event contract belongs to commodity derivatives and is under the exclusive jurisdiction of the CFTC, while sports betting and casino games are not considered derivatives. Two proposals will be submitted on Friday, and the feedback period is 30 days. Kalshi and Polymarket, among other predictive market operators, have been sued by multiple states for illegal gambling. The CFTC has filed a counterclaim to maintain federal jurisdiction, and the related disputes involve the division of regulatory powers between the federal and state levels. (Source: CFTC)