Sponsors (3)
The bill reduces exchange-related systemic and regulatory risks by banning exchange-traded sports- and casino-related contracts, but does so at the cost of removing regulated trading and clearing options—potentially increasing counterparty risk, costs, market fragmentation, and limiting regulated innovation and consumer protections.
Taxpayers and the broader financial system face lower systemic risk because the bill bars exchange-traded sports- and casino-related contracts that could enable large-scale speculative derivatives exposure.
Registered trading platforms and clearinghouses (and their customers) have reduced regulatory and compliance exposure because they are prohibited from listing or clearing new sports- and casino-related contracts.
State governments retain authority to regulate or prohibit sports- and casino-related contracts, preserving local control so regulation can reflect community standards.
Financial institutions, investors, and small businesses lose the ability to trade or hedge sports- and casino-related contracts on regulated exchanges and through central clearing.
Market participants and taxpayers face higher counterparty risk and likely higher transaction costs because prohibited exchange trading will push these contracts into unregulated venues or bilateral agreements without central clearing.
State-by-state authority increases the risk of fragmented and inconsistent rules, creating compliance complexity for market participants operating across jurisdictions.
Based on analysis of 2 sections of legislative text.
Bars contracts tied to sporting events or casino-style games from being listed, cleared, or traded on registered commodity-trading entities and preserves state regulatory authority.
Introduced March 23, 2026 by Adam Schiff · Last progress March 23, 2026
Prohibits any agreement, contract, or transaction tied to sporting events or casino-style games from being listed, cleared, or traded on entities registered under the federal commodity trading law. It defines "casino-style games" (e.g., slots, blackjack, roulette, lottery, simulated casino games) and "sporting event or athletic competition" (live or virtual contests, including amateur, collegiate, and professional sports). The ban applies to transactions entered into on or after enactment and explicitly preserves State authority to regulate or prohibit such activities.