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00:02The Commodity Futures Trading Commission is moving to clarify whether prediction market
00:06contracts are financial products or gambling, according to White House regulatory filings.
00:10The agency sent two rules to the White House for review.
00:13One would treat event contracts as swaps under federal derivatives law, while the other would
00:17exclude casino-style gambling products from the swap definition.
00:20The move follows a Sixth Circuit ruling against Calci that found sports contracts do not qualify
00:25as swaps.
00:26The court also ruled that federal commodities law would not override Ohio or Tennessee gambling
00:31laws.
00:31Federal courts remain split, with the Third Circuit siding with Calci in New Jersey, while
00:36the Sixth and Ninth Circuits have ruled against it.
00:38The CFTC has not yet explained how its new rules will distinguish sports event contracts
00:42from casino-style gambling products.
00:44For all things money, visit Benzinga.com.
