"Congress gave the CFTC exclusive jurisdiction over trades on DCMs, provided for continued state regulation of trades conducted off DCMs, and recognized that while event contracts could involve gaming, the CFTC has discretionary power to review and prohibit those contracts."
"Roth's dissent acknowledged that a plain reading of the US law's text suggests that Kalshi's sports-event contracts fit comfortably within the statutory definition of swaps."
"The law defines swap to include contracts in which payment is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence."
The Dodd-Frank Act grants the CFTC the power to review and prohibit certain contracts, including gaming contracts. The CFTC has not yet acted on sports-related event contracts. The District Court concluded that Kalshi is likely to succeed in showing that the Act preempts New Jersey law regarding these contracts. A dissenting opinion noted that the broad definition of swaps could encompass many types of wagers, raising concerns about the implications of such a definition on various forms of betting.
Read at Ars Technica
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