Much has been made in the last year about whether the 2010 Dodd-Frank Wall Street Reform and Consumer Act can or should be interpreted to mean that sports event contracts — trades on prediction markets — are legal.
The Commodity Futures Trading Commission (CFTC), which is tasked with enforcing the Commodities Exchange Act (CEA) that the Dodd-Frank amended after the worst financial crisis in a generation, includes a special rule that seems to ban such contracts…
Christopher Dodd, one of the former senators whose name is on the act, says the amendment and regulation leave no room for interpretation — “Congress did not set out to authorize nationwide sports betting through derivatives markets or displace decades of state and tribal primacy over gaming regulation.”
