{"id":14323,"date":"2026-10-10T16:38:50","date_gmt":"2026-10-10T16:38:50","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=14323"},"modified":"2026-10-10T16:38:50","modified_gmt":"2026-10-10T16:38:50","slug":"cftc-proposes-prediction-contract-and-sportsbook-divide","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=14323","title":{"rendered":"CFTC proposes prediction contract and sportsbook divide"},"content":{"rendered":"<p><\/p>\n<div data-cs-editorial-figure-scope=\"\" data-cs-editorial-quote-scope=\"\" data-cs-image-viewer-scope=\"\" data-single-article-content=\"\">\n<p>The Commodity Futures Trading Commission announced two actions on Oct. 9 seeking to clarify the federal regulatory boundary between prediction-market contracts and traditional gambling. It proposed expressly including sports and other event contracts in the definition of a swap, a category of financial derivative, while announcing a separate interim final rule to codify the exclusion of sportsbook and casino wagers.<\/p>\n<p>The event-contract proposal covers sports, politics, cultural events and weather-related outcomes. CFTC Chairman Michael S. Selig said these products fall within the agency\u2019s exclusive jurisdiction under the Commodity Exchange Act.<\/p>\n<p>That classification matters because the products can look familiar to bettors. The CFTC explains that event contracts often let traders buy yes-or-no positions on a future outcome, with a fixed payout, usually $1. Their value depends on that outcome, and they can be used to hedge risk or speculate.<\/p>\n<p>The distinction is visible in how platforms present their products: CryptoSlate\u2019s Cloudbet sportsbook review examines odds-based wagers, while its Polymarket review examines tradeable outcome contracts.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">CFTC staff presses exchanges on political speech prediction market bets, asks how to prevent manipulation<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<p>The proposed inclusion is not final. The CFTC is seeking written comments through Regulations.gov within 30 days of the proposal\u2019s publication in the Federal Register.<\/p>\n<p>The casino-wager action is an interim final rule. The agency describes it as codifying its longstanding position that casino-style gambling products, including wagers placed on sportsbooks and casino games, fall outside the swap definition.<\/p>\n<p>According to the CFTC, the exclusion takes effect immediately upon publication in the Federal Register. It also carries a 30-day comment window tied to that publication. Neither announcement specifies the Federal Register publication date, so the Oct. 9 date does not establish an effective date or comment deadline.<\/p>\n<aside id=\"cs-inline-newsletter-1\" class=\"cs-inline-newsletter cs-newsletter-brand\" data-newsletter-edition=\"catalyst\" data-inline-newsletter=\"\" data-newsletter-placement=\"article-midpoint\" aria-labelledby=\"cs-inline-newsletter-1-title\" aria-describedby=\"cs-inline-newsletter-1-copy\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\">\n<div class=\"cs-inline-newsletter__editorial\">\n<p class=\"cs-inline-newsletter__eyebrow\">The Catalyst<\/p>\n<p class=\"cs-newsletter-frequency\">Daily Newsletter<\/p>\n<h2 id=\"cs-inline-newsletter-1-title\" class=\"cs-inline-newsletter__title\">Know what\u2019s moving crypto.<\/h2>\n<p id=\"cs-inline-newsletter-1-copy\" class=\"cs-inline-newsletter__copy\">Start with the stories that matter. Get the context behind the headlines and a clear view of what to watch next.<\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__art\" aria-hidden=\"true\"> <img loading=\"lazy\" src=\"https:\/\/cryptoslate.com\/wp-content\/themes\/cryptoslate-2020\/images\/catalyst-newsletter-scrapbook-v3.webp\" alt=\"\" width=\"640\" height=\"640\" loading=\"lazy\" decoding=\"async\"\/><img loading=\"lazy\" class=\"lazyload\" src=\"https:\/\/cryptoslate.com\/wp-content\/themes\/cryptoslate-2020\/images\/catalyst-newsletter-scrapbook-v3.webp\" alt=\"\" width=\"640\" height=\"640\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter shoggoth-infographic shoggoth-infographic-portrait wp-image-570915\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7.png\" alt=\"Comparison of the CFTC's proposed event-contract swap inclusion and announced casino-wager exclusion, with Federal Register publication triggers and unresolved state-law access.\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7-768x960.png 768w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\"\/><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"lazyload aligncenter shoggoth-infographic shoggoth-infographic-portrait wp-image-570915\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7.png\" alt=\"Comparison of the CFTC's proposed event-contract swap inclusion and announced casino-wager exclusion, with Federal Register publication triggers and unresolved state-law access.\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-0d4964c7-facf-4494-b6ca-5f31fabac9d7-768x960.png 768w\" data-sizes=\"(max-width: 720px) 100vw, 720px\"\/><\/p>\n<h2>State-law disputes remain consequential<\/h2>\n<p>The agency\u2019s classification position faces a separate legal question: whether federal regulation displaces state gambling laws.<\/p>\n<p>In a Sept. 25 ruling on preliminary-injunction appeals involving prediction-market operator Kalshi, the Sixth Circuit held that the company had not shown its sports-event contracts met the statutory swap definition. It also held, alternatively, that even assuming the contracts were swaps, the Commodity Exchange Act did not expressly or impliedly preempt Ohio\u2019s or Tennessee\u2019s gambling laws.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Kalshi must lock out state users after major court loss<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<p>That alternative holding illustrates the obstacle for operators seeking nationwide access: winning an argument about product classification does not necessarily win the argument over state authority.<\/p>\n<p>The distinction also drew criticism from advocacy group Better Markets. In an Oct. 9 statement, securities-policy director Benjamin Schiffrin argued that sports event contracts enable sports betting and should remain subject to state gambling laws.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">New York sues Polymarket, seeks triple gains and $100,000 penalties over prediction markets<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<\/div>\n<p>Derivatives,Featured,Legal,Regulation,Kalshi,regulationKalshi,regulation#CFTC #proposes #prediction #contract #sportsbook #divide1791650330<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Commodity Futures Trading Commission announced two actions on Oct. 9 seeking to clarify the federal regulatory boundary between prediction-market contracts and traditional gambling. It proposed expressly including sports and other event contracts in the definition of a swap, a category of financial derivative, while announcing a separate interim final rule to codify the exclusion<\/p>\n","protected":false},"author":1,"featured_media":14324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[1381,2092,3195,1384,765,2455,389,7346],"class_list":["post-14323","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ethereum","tag-cftc","tag-contract","tag-divide","tag-kalshi","tag-prediction","tag-proposes","tag-regulation","tag-sportsbook"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CFTC proposes prediction contract and sportsbook divide - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"The CFTC proposed event-contract swap status and a casino-wager exclusion, while state-law disputes continue to cloud prediction-market access.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=14323\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CFTC proposes prediction contract and sportsbook divide\" \/>\n<meta property=\"og:description\" content=\"The CFTC proposed event-contract swap status and a casino-wager exclusion, while state-law disputes continue to cloud prediction-market access.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptonews.uk.com\/?p=14323\" \/>\n<meta property=\"og:site_name\" content=\"Crypto News: Latest Cryptocurrency News and Analysis\" \/>\n<meta property=\"article:published_time\" content=\"2026-10-10T16:38:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/10\/cftc-sportsbook-divide.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"\u884c\u653f\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\u884c\u653f\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=14323\",\"url\":\"https:\/\/cryptonews.uk.com\/?p=14323\",\"name\":\"CFTC proposes prediction contract and sportsbook divide - Crypto News: Latest Cryptocurrency News and Analysis\",\"isPartOf\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=14323#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=14323#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/10\/cftc-sportsbook-divide.webp\",\"datePublished\":\"2026-10-10T16:38:50+00:00\",\"author\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#\/schema\/person\/822778c5844e0d16d43dce6630f4f1bf\"},\"description\":\"The CFTC proposed event-contract swap status and a casino-wager exclusion, while state-law disputes continue to cloud prediction-market access.\",\"breadcrumb\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=14323#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cryptonews.uk.com\/?p=14323\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=14323#primaryimage\",\"url\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/10\/cftc-sportsbook-divide.webp\",\"contentUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/10\/cftc-sportsbook-divide.webp\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=14323#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cryptonews.uk.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"CFTC proposes prediction contract and sportsbook divide\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cryptonews.uk.com\/#website\",\"url\":\"https:\/\/cryptonews.uk.com\/\",\"name\":\"Crypto News: Latest Cryptocurrency News and Analysis\",\"description\":\"Latest Crypto &amp; 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