The CFTC's October 9 rules: what they say about event contracts and sportsbooks

What did the CFTC announce?

	Interim final rule (release 9309-26)	Proposed rule (release 9310-26)
What it says	Casino-style gambling products, including sportsbook wagers and casino games, are excluded from the "swap" definition	The term "swap" would expressly include event contracts, including those based on sports, politics, cultural and weather events
CFTC's description	Codifies the CFTC's "longstanding position"	Proposes to "resolve any ambiguity" about these contracts
When it takes effect	Immediately on publication in the Federal Register	Only after the CFTC reviews comments and adopts a final rule
Comments	Until November 18, 2026, via Regulations.gov	Until November 18, 2026, via Regulations.gov
Status	Published in the Federal Register on October 19, 2026; in effect since that day	Published in the Federal Register on October 19, 2026; not in force unless a final rule is adopted

"Casino-style gambling products are not derivatives," CFTC Chairman Michael S. Selig said with the interim rule. With the proposal he said event contracts "are commodity derivatives squarely within the CFTC's regulatory remit under the Commodity Exchange Act and are within the agency's exclusive jurisdiction."

Why does the word "swap" matter?

The Commodity Exchange Act gives the CFTC authority over swaps and other derivatives traded on the exchanges it registers. Whether a product counts as a swap decides who regulates it:

• Sportsbook bets and casino games: the interim rule says these are not swaps, so they stay with the states that license sportsbooks and casinos.
• Event contracts on registered exchanges (such as Kalshi, Polymarket US, OG and ProphetX): the proposal would put in the CFTC's own rules that these are swaps, which is the basis for the CFTC's position that it, not the states, regulates them.

That second point is at the center of the court fights between exchanges and states. Several states say sports event contracts are gambling that needs a state license; the exchanges and the CFTC say federal law governs. The proposal states the CFTC's view; it does not decide those cases, which courts are still hearing (three petitions on sports event contracts are pending at the Supreme Court: Nos. 26-299, 26-338 and 26-344; see our legal status tracker).

What changes for traders now?

Nothing yet:

• Your account, the contracts you can trade and the fees stay the same.
• Where you can trade still depends on each platform and on court orders in some states. As of October 13, 2026, Kalshi's sports contracts are blocked by court order in Nevada, Michigan and Washington; Polymarket US and ProphetX are not offered in Nevada; OG does not offer sports contracts in eight states. Details: our state-by-state guide.
• The interim rule took effect on October 19, 2026, the day it was published in the Federal Register; the proposed rule takes effect only if a final rule is adopted.

What changes for platforms?

• Sportsbooks and online casinos: the interim rule confirms the CFTC does not treat their bets as swaps, so they keep dealing with state gaming regulators.
• CFTC-registered exchanges: if the proposal is adopted as written, the CFTC's rules would expressly treat sports, politics, culture and weather event contracts as swaps. Exchanges already list these contracts under the CFTC's existing rules; the proposal is about how they are defined, not a new approval.

How can you comment?

Both documents take written comments through Regulations.gov until November 18, 2026. The Federal Register pages: interim final rule (opens in a new tab) and proposed rule (opens in a new tab).

Where to trade event contracts

Kalshi (opens in a new tab), Polymarket US (opens in a new tab), OG (opens in a new tab) and ProphetX (opens in a new tab) are CFTC-registered exchanges; each runs its own order book. Kalshi's, Polymarket US's and OG's minimum age is 18; ProphetX's is 18 (or the local age of majority if higher); we recommend 21+.

This page explains what the CFTC published. It is not legal advice.

Frequently asked questions

What did the CFTC announce on October 9, 2026?

An interim final rule stating that casino-style gambling, including sportsbook wagers and casino games, is not a "swap", and a proposed rule that would define event contracts on sports, politics, cultural and weather events as swaps.

Are the CFTC's October 2026 rules in effect?

The interim final rule is: it took effect on October 19, 2026, when it was published in the Federal Register. The proposed rule is not; it needs a final rule first.

When are comments due?

By November 18, 2026, for both documents, through Regulations.gov.

Do the rules change what I can trade?

No, not today. Your platform's contracts, fees and state availability stay the same. The rules are about how the CFTC defines these products.

Do the rules settle the state lawsuits?

No. They state the CFTC's position. Courts, including the Supreme Court if it takes the pending petitions, decide the disputes between states and exchanges.