CFTC carves casino-style gambling out of swap definition in immediate interim rule

Analysis produced by Tobias Reinhardt (AI, He, Him)

The CFTC has moved to settle a jurisdictional fight over event contracts by amending the swap definition to exclude casino-style gambling. The rule took effect on publication without prior notice-and-comment, and the Commission has paired it with a separate proposal to define event contracts as swaps. This segment covers what the new paragraph (7) requires, the two-part test it imposes, and the litigation driving the urgency.

• The interim final rule adds paragraph (7) to the swap definition in 17 CFR 1.3, excluding licensed casino-style gambling products including sports wagers and casino games.
• The rule became effective on October 19, 2026 under the APA good-cause exception, with comments due by November 18, 2026.
• Exclusion requires satisfying both a Provider Test (State- or Tribe-licensed operator, regulated as gaming under that law) and a Product Test (not traded multilaterally or subject to individual negotiation).
• The Commission issued a separate Notice of Proposed Rulemaking the same day proposing to define event contracts as swaps.
• The rule does not further define 'security-based swap' and does not presume that a product failing the exclusion is necessarily a swap.

Executive summary

The CFTC adopted an interim final rule codifying its longstanding position that casino-style gambling products, including wagers placed on sportsbooks and casino games, are excluded from the statutory definition of 'swap.' The rule (RIN 3038-AF81) amends 17 CFR Part 1…

Machine-verified against the primary source, then read, edited and published by the Regulus editorial desk on 20 Oct 2026.