CFTC to Exclude Casino-Style Gambling Products From Swap Definition
The CFTC approved an interim rule excluding casino-style gambling products from its swap definition, effective upon Federal Register publication.Summary
The Commodity Futures Trading Commission (CFTC) approved an interim final rule that excludes casino-style gambling products, including wagers on sportsbooks and casino games, from its definition of a "swap." The rule takes effect upon publication in the Federal Register, with a 30-day public comment period. Chairman Michael S. Selig stated that casino-style gambling is not a derivative and that the action clarifies the boundary between CFTC jurisdiction over derivatives and state and tribal jurisdiction over gambling. The rule does not affect CFTC-regulated sports event contracts offered on designated contract markets. Separately, another proposed rule that would expand the swap definition to include event contracts, likely including sports event contracts, remains pending. Federal circuit courts are split on whether such contracts qualify as swaps, and the pending rule could position the CFTC for a potential Supreme Court review.
(Source：Sports Betting Dime)