CFTC folds event contracts into swaps, excludes casino sportsbooks

The CFTC has carved casino sportsbooks out of the definition of a swap, completing its two-part rulemaking that folds prediction-market event contracts into its swaps oversight while excluding "casino-style gambling products." The rules, submitted to the White House OMB, let Chair Mike Selig argue the agency holds exclusive authority over platforms like Kalshi, Polymarket, Crypto.com and Robinhood — undercutting state lawsuits that have split the federal circuits (the Sixth and Eighth backed state gaming law for Kalshi's sports contracts; the Third backed CFTC jurisdiction).

Former federal prosecutor Renato Mariotti told CoinDesk the cases aren't really about the statute: "I think they're turning on gut feel." The comment lands as the CFTC, acting with Selig as its lone member, pushes to consolidate prediction-market oversight under one national regulator.