CFTC Proposes Putting Event Contracts Inside the Swap Definition; Comments Due 18 November
The CFTC proposes to place sports, politics, culture and weather event contracts in the swap definition. Comments close 18 November 2026.
The Commodity Futures Trading Commission (CFTC) has proposed a rule that would place event contracts, including those tied to sports, politics, cultural events and weather, inside the federal definition of "swap", with public comments due 18 November 2026.
The proposal was approved on 9 October 2026 and published in the Federal Register on 19 October 2026 as document 2026-21377 (Regulation Identifier Number 3038-AF82). Comments go to docket CFTC-2026-2213. The deadline runs from the Federal Register date, not the approval date, which leaves eight days from today.
What the CFTC proposes
The rule would add a new paragraph (2)(i)(G) to the "swap" definition in 17 CFR § 1.3, the section of the Code of Federal Regulations that holds the agency's general definitions. The CFTC says it is acting to "further define" swap so that event contracts are expressly covered.
The scope is wider than sports. The notice names sports, politics, cultural and weather events, so the rule would reach any event-based contract in those categories.
| Item | Detail |
|---|---|
| Federal Register document | 2026-21377, published 19 October 2026 |
| Regulation Identifier Number | 3038-AF82 |
| Docket | CFTC-2026-2213 |
| Comment deadline | 18 November 2026 |
| Rule text | New paragraph (2)(i)(G) in 17 CFR § 1.3 |
| Commission vote | Chairman Selig yes; no commissioner voted no |
| Comments on Regulations.gov, as of 26 October 2026 | 5 |
Legal basis
The CFTC cites four prongs of section 1a(47)(A) of the Commodity Exchange Act (CEA): (i), (ii), (iv) and (vi). It also invokes its authority under sections 712(d) and 721(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act to further define "swap".
The court split behind the rule
The notice sets out why the agency is moving: federal appeals courts disagree on whether sports contracts are swaps.
| Court | Timing | Holding |
|---|---|---|
| Third Circuit (KalshiEX v. Flaherty, divided panel) | April 2026 | Sports contracts are swaps |
| Ninth Circuit | August 2026 | "Likely not swaps"; rehearing en banc petition filed |
| Sixth Circuit | September 2026 | Not swaps, on different reasoning |
The notice also catalogs state pressure on operators. It names Minnesota's felony ban on "prediction markets", an Arizona criminal information with 20 counts, and a bid for a temporary restraining order in New York. It also notes geofencing orders in Michigan, Washington and Nevada.
That pressure continues elsewhere. Utah has filed 14 criminal charges against Kalshi and its co-founders, which are allegations, and Kalshi has sued Louisiana officials in federal court. In Illinois, a judge entered a preliminary injunction blocking licensing and tax rules on sports event contracts. Each dispute turns on whether federal commodities law displaces state gambling law.
The companion interim final rule
According to Skadden, the CFTC issued an interim final rule (IFR) on the same day, 9 October 2026. The IFR excludes casino-style gambling from the swap definition, covering sportsbook wagers, casino games, bingo, pool wagering, lotteries and raffles.
To qualify for the exclusion, the provider must be licensed under state or tribal law, and the product must not trade on a designated contract market (DCM), a swap execution facility (SEF) or a similar venue. Skadden reports that comments on both releases are due 18 November 2026.
The two documents work as a pair. The proposal brings event contracts into the swap definition, and the IFR marks the boundary for licensed gambling products that stay outside it.
Related CFTC activity
The swap proposal is not the agency's only recent action. A separate June 2026 CFTC proposal addresses event contracts, public-interest factors and a definition of "gaming", according to a Greenberg Traurig summary. On 6 November the CFTC directed exchanges to end domestic geographic restrictions within 30 days, a separate step from this rulemaking.
What operators and regulators should watch
- Deadline: submissions must be received by 18 November 2026 on docket CFTC-2026-2213.
- Eligibility for the casino exclusion: whether a product is state- or tribally licensed and off DCM and SEF venues decides which side of the line it falls on.
- Appellate review: the Ninth Circuit rehearing petition and the three-way split remain open while the rulemaking proceeds.
- State enforcement: Ohio is one example, where Robinhood, Coinbase, Gemini and Moomoo agreed to halt sports event contracts.
Status reviewed on 10 November 2026. Dates, docket details and court holdings come from the CFTC notice and the Federal Register entry, with interim final rule details from Skadden. More regulation news and North America coverage.
Frequently asked questions
When are comments due on the CFTC event contracts swap proposal?
Comments must be received by 18 November 2026. That date falls 30 days after the proposal appeared in the Federal Register on 19 October 2026 as document 2026-21377. The docket is CFTC-2026-2213, and the rule carries Regulation Identifier Number 3038-AF82.
What does the CFTC proposal do?
It proposes to further define "swap" so the term explicitly includes event contracts, among them contracts based on sports, politics, cultural events and weather. The text adds a new paragraph (2)(i)(G) to the swap definition in 17 CFR § 1.3, the CFTC's general definitions section.
Why is the CFTC acting now on sports event contracts?
Federal appeals courts have split. The Third Circuit held in April 2026 that sports contracts are swaps, in KalshiEX v. Flaherty. The Ninth Circuit held in August 2026 that they are likely not swaps, and the Sixth Circuit reached a similar result in September on different reasoning.
What is the interim final rule issued alongside the proposal?
According to law firm Skadden, the CFTC issued an interim final rule on 9 October 2026 excluding casino-style gambling from the swap definition. That covers sportsbook wagers, casino games, bingo, pool wagering, lotteries and raffles, provided the provider is licensed under state or tribal law and the product does not trade on a DCM, SEF or similar venue.
Which legal authority does the CFTC cite for redefining swap?
The CFTC relies on four prongs of Commodity Exchange Act section 1a(47)(A): (i), (ii), (iv) and (vi). It also cites its authority to further define "swap" under sections 712(d) and 721(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
