Sponsors (2)
The bill prioritizes protecting consumers and market integrity by banning betting-style derivatives on regulated U.S. venues, but does so at the expense of industry revenue, potential taxpayer fees, increased migration to unregulated markets, and legal uncertainty for novel products.
Retail investors, consumers, and the broader financial market will face reduced exposure to gambling-linked derivatives because exchanges and clearinghouses are barred from listing betting-style contracts tied to sports or casino games, lowering the risk of market manipulation, fraud, and systemic spillovers.
Retail and institutional customers who want to trade or hedge event-based exposures will likely be pushed to unregulated or offshore venues, increasing counterparty, fraud, and enforcement risks for those Americans.
Exchanges, clearinghouses, and firms that would have offered regulated sports- and gaming-linked contracts will lose potential revenue and product opportunities, and taxpayers could lose related fee and oversight revenue.
Financial firms, product developers, and their customers will face legal uncertainty because the bill's broad definition (including simulated/virtual/digital events) could unintentionally sweep in novel products not intended to target gambling.
Based on analysis of 2 sections of legislative text.
Prohibits registered exchanges and clearing entities from listing, facilitating, or clearing contracts tied to sporting events or casino-style games.
Introduced February 10, 2026 by Alice Costandina Titus · Last progress February 10, 2026
Bans registered derivatives exchanges, clearing organizations, and other registered entities from listing, facilitating, or clearing any agreement, contract, or transaction that is based on or references a sporting event, athletic competition, or casino-style game. The prohibition covers live, simulated, or virtual sporting events (including amateur, intercollegiate, and professional) and a broad set of casino games (slot machines, blackjack, roulette, craps, poker, bingo, lotteries, and digital/simulated versions). The change is made by adding a new restriction to the Commodity Exchange Act that prevents CFTC-registered trading and clearing platforms from offering instruments tied to these types of events or games. No funding, effective date, or implementation timeline is specified in the text provided.