CFTC Expands Opportunity for Public Feedback on Proposed Prohibition of Wagers Connected to Elections
Loosie Goosey Lays Down the Law on Event Contracts
The Commodity Futures Trading Commission (CFTC), that badass agency focused on nabbing commodities fraud, hedge fund fraud, energy manipulation, and other criminal shenanigans, just extended the public comment period for proposed rule changes related to event contracts. Or, as the cool kids call it, them fancy-schmancy bets on sports and elections.
Originally, the public was expected to chime in by July 9, 2024, but as of now, the deadline's been pushed back a whole month, ending August 8. Why the change? To give interested parties more time to study the CFTC's proposal and fire off their two cents.
Remember back in May when the CFTC announced its feelin' slightly shady about derivatives linked to sports and elections? They're still considerin' their feelings, so if ya got something to say, now's the time.
Defining the Game
The CFTC's proposal targets specific contracts that fall under the Commodity Exchange Act's umbrella. They wanna ban wagers on things they consider "contrary to the public interest" and proscribe contracts related to terrorism, war, and unlawful activities.
They're also tryin' to nail down a definition for "gaming" under their regulations, referencin' activities like wagering on award contests, political events, or sports competitions. If the changes go through, CFTC-registered organizations won't be allowed to offer such trading options.
Ain't no sportsbook in the US currently entertainin' wagers on political events, but their popularity's gradually risin'. Take that recent Biden-Trump debate, for example, which spawned a whole slew of prop bets. Heck, these wagers were even available via BetOnline.ag, a sportsbook currently not regulated in the US and offerin' 'em nearly 50 different bets for that political smackdown.
The State of Play
The CFTC regulates a select few sports event futures contracts, but leave traditional sports betting to state gambling authorities. Some states have their own strict rules for event wagering, like Arizona, which reserves rights for professional sports teams or tribal operators.
Given ongoing discussions, regulatory indecision, and potential expansions, the future of event contract regulation remains murky. The CFTC's still debatin' whether these contracts fall under gaming or financial derivatives regulations, causing endless debate among stakeholders and regulators alike.
If ya got a hankerin' for more info on the craziness that is event contract regulation, remember, the comment period's open to you, pal! Make your voice heard, and don't be afraid to let 'em know what you think. But be warned; this ain't a walk in the park. The waters are murky, and nobody really knows where they're headed. So good luck, and may the odds be ever in your favor.
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- In light of the extended comment period by the Commodity Futures Trading Commission (CFTC), interested parties have the opportunity to voice their opinions on the proposed changes to event contracts, which include derivatives related to sports, politics, and general news.
- The CFTC's proposal aims to ban certain contracts considered contrary to public interest, such as wagers on terrorism, war, and unlawful activities, and to establish a definition for "gaming" under their regulations, potentially affecting various businesses involved in sports, finance, and news sectors.
