CFTC proposals aimed at separating prediction markets from casino gambling
Summary
The CFTC proposed defining event contracts—including those tied to sports, politics, culture and weather—as swaps under federal law, placing them under its exclusive jurisdiction. A second proposal would explicitly exclude casino and sportsbook gambling from the swap definition. Both proposals have 30-day comment periods and come amid lawsuits between states and prediction-market operators such as Kalshi and Polymarket over whether state gambling laws apply. Conflicting federal appeals court rulings have intensified the jurisdictional dispute, potentially setting up a Supreme Court decision.
