Further Definition of “Swap” To Exclude Casino-Style Gambling Products
Key claim: The CFTC is putting into its rules that sportsbook bets and casino games are not “swaps,” so those gambling products stay outside federal derivatives regulation.
Abstract
(Rule · Commodity Futures Trading Commission) The Commodity Futures Trading Commission (“Commission” or “CFTC”) is adopting an interim final rule (“Interim Final Rule”) to codify its longstanding position that casino-style gambling products, including wagers placed on sportsbooks and casino games, are excluded from the “swap” definition.
Why this matters
The CFTC’s swap definition is the jurisdictional gate that pulls a product into Dodd-Frank clearing, reporting, and dealer-registration regimes. By formally codifying that sportsbook and casino games are not swaps, the agency preserves state gambling regulators’ exclusive turf and sharpens the contested line between state-licensed gambling and federally regulated event contracts.