CFTC Moves to Define Prediction Market Contracts as Swaps

The United States Commodity Futures Trading Commission (CFTC) has introduced two regulatory measures aimed at defining its authority over prediction markets and distinguishing event-based financial contracts from conventional gambling products. Announced Friday, the measures would formally classify event contracts linked to sports, politics, culture and weather as swaps while explicitly excluding sportsbook wagers and casino games from that category. The actions arrive as federal courts disagree over whether prediction market operators can offer sports-related contracts without complying with state gambling laws.

Source: World Casino News