CFTC proposes classifying event contracts as swaps, excluding gambling

The U.S. Commodity Futures Trading Commission (CFTC) has issued two regulatory measures to clarify federal oversight of prediction markets , proposing to classify event contracts as swaps while excluding traditional casino-style gambling products from the definition. The first proposed rule would expand the definition of “swap” to cover event contracts linked to cultural events, weather, politics, and sports. The agency said the proposal aims to resolve ambiguity surrounding the classification of these contracts under federal law.