White House vets CFTC bid to redefine event contracts as swaps

The CFTC wants event contracts redefined as swaps while carving out casino-style gambling products.

The hit

The CFTC has filed proposals with the White House to redefine event contracts as swaps & to carve out casino-style gambling products, according to The Block. The move deepens a jurisdiction fight with states, which has already prompted New Jersey’s attorney general to ask the Supreme Court to settle the issue.

Why it matters

States say platforms operate illegally in their locales, violate gambling laws, criticise age limits & avoid paying taxes, according to The Block. Multiple states have brought lawsuits against certain platforms; the CFTC has countersued to block state oversight. Gaming & sports betting lawyer Daniel Wallach said the casino-exclusion rule would take effect immediately, skipping the usual notice & comment, which could leave it open to challenge under the Administrative Procedure Act.

The record

CFTC filings	Two proposals sent to the White House’s OIRA office
Kalshi appeal	Lost last week; Ohio & Tennessee can enforce sports gambling laws (federal appeals court)
Supreme Court ask	New Jersey attorney general Jennifer Davenport requested review earlier this month
Rule status	Casino-exclusion rule at ‘interim final rule’ stage (OIRA)
Market scale	Kalshi & Polymarket each valued at tens of billions of dollars

What happens next

Watch for the Supreme Court’s decision on whether to hear New Jersey’s jurisdiction challenge.

Sources: White House weighs new CFTC event contract rules in growing prediction market power struggle

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