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      CFTC Proposes New Rules for Event Contracts, Excludes Casino Gambling

      The Commodity Futures Trading Commission (CFTC) has proposed a new rule that would classify certain event contracts as swaps, while simultaneously issuing an interim final rule to exclude casino gambling products from this definition. The proposed rule, which is currently open for public comment, aims to clarify the classification of contracts based on sports, politics, cultural events, and weather, which are commonly referred to as swaps in the financial industry.

      CFTC Chairman Michael S. Selig emphasized that event contracts are utilized by Americans for hedging risks, speculation, and gaining insights into future outcomes. He indicated that these products fall under the agency's jurisdiction as commodity derivatives, as defined by the Commodity Exchange Act. This proposed classification could bolster the positions of companies like Kalshi and Polymarket US, which have sought federal oversight of their event contracts amid challenges from state gambling regulators.

      The interim final rule reinforces the CFTC's long-standing stance that casino-style gambling products, including wagers on sportsbooks and casino games, do not qualify as derivatives and thus fall outside the agency's regulatory authority. Selig noted that this exclusion clarifies the boundaries of the CFTC's jurisdiction over activities traditionally regulated at the state level. Together, these measures aim to differentiate financial derivatives from conventional gambling products.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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