Sponsors (2)
The bill bars registered exchanges and clearinghouses from handling casino‑style and sports‑betting contracts to limit financial‑market exposure and preserve state regulatory control, but it narrows market opportunities and may push consumers toward less regulated trading venues.
State governments: retain clear authority to regulate or prohibit gambling and sports‑wagering markets, preserving state consumer‑protection and public‑policy choices.
Financial institutions: registered exchanges and clearinghouses are barred from listing or clearing casino‑style gambling and sports‑betting contracts, reducing systemic exposure of U.S. financial markets to gambling instruments.
Consumers (including recreational bettors and middle‑class families): will have fewer regulated, exchange‑cleared options for sports betting and casino‑style derivatives and may rely more on unregulated platforms, increasing consumer risk.
Operators, exchanges, and fintech firms: lose a potential market for trading and clearing standardized sports and casino‑style contracts, reducing business opportunities and revenue.
Interstate businesses and firms operating across states: the non‑preemption approach preserves divergent state laws and could create a patchwork of rules that raises compliance costs and operational complexity.
Based on analysis of 2 sections of legislative text.
Prohibits listing, clearing, or trading on registered entities of contracts tied to sporting events or casino-style games, defines those terms, and preserves state authority.
Prohibits registered trading or clearing of agreements, contracts, or transactions tied to sporting events or casino-style games on registered entities under the Commodity Exchange Act. It defines “casino-style game” and “sporting event or athletic competition,” and preserves State authority to regulate or prohibit such contracts. The ban applies to agreements, contracts, or transactions entered into on or after enactment; it does not change state law or preempt state regulation of these products.
Official title: To amend the Commodity Exchange Act to prohibit certain event contracts involving sports and casino-style games.
Introduced July 22, 2026 by Steven Horsford · Last progress July 22, 2026