Sponsors (3)
The bill reduces federal/exchange exposure and potential systemic risk by banning exchange-traded sports- and casino-related contracts and preserves state control, but it shifts activity into unregulated venues, raising counterparty risk, costs, regulatory fragmentation, and limiting innovation and consumer protections.
Financial market participants and taxpayers face lower systemic and market-stability risk because registered exchanges and clearinghouses are barred from offering or clearing sports- and casino-related contracts, reducing the chance that large speculative derivatives tied to those outcomes could threaten broader markets.
Financial institutions and other market participants face reduced regulatory risk because regulated trading venues cannot list or clear new sports- and casino-style contracts, simplifying federal oversight exposure for those entities.
State governments retain authority to regulate or prohibit sports- and casino-related contracts, allowing local policymakers to reflect community standards and tailor rules to state conditions.
Businesses, investors, and bettors lose access to regulated exchanges and central clearing for sports- and casino-related contracts, likely pushing trading into unregulated bilateral venues and increasing counterparty risk, transaction costs, and hedging frictions.
State-by-state authority over these contracts increases regulatory fragmentation, forcing firms to navigate divergent rules across jurisdictions and raising compliance complexity and costs.
Consumers and small firms may see fewer innovative, exchange-based sports-betting or outcome-linked financial products and lose the consumer protections that exchange oversight can provide, constraining product development and safeguards.
Based on analysis of 2 sections of legislative text.
Bars listing, clearing, or trading on registered entities any contracts relating to sporting events/athletic competitions or casino-style games entered after enactment.
Official title: Amend the Commodity Exchange Act to prohibit certain event contracts involving sports and casino-style games.
Introduced March 23, 2026 by Adam Schiff · Last progress March 23, 2026
Prohibits listing, clearing, or trading on registered futures/derivatives exchanges any agreements, contracts, or transactions that relate to sporting events, athletic competitions, or casino-style games (including simulations). It adds definitions of “casino-style game” and “sporting event or athletic competition,” preserves state authority to regulate or ban such activity, and applies to contracts entered on or after enactment.