S. 4160: Prediction Markets Are Gambling Act

This bill, known as the Prediction Markets Are Gambling Act, aims to change existing laws regarding the trading of certain types of contracts related to sports and casino-style games under the Commodity Exchange Act. Here are the main points regarding what the bill would do:

Prohibition on Event Contracts

The bill seeks to prohibit the listing or trading of contracts related to:

• Sporting events or athletic competitions: This includes any live or virtual competitions where individuals or teams compete, such as professional, collegiate, and amateur sports.
• Casino-style games: This term covers traditional casino games such as slot machines, video poker, blackjack, roulette, craps, bingo, lotteries, and any simulations of these games.

Amendment to the Commodity Exchange Act

To implement this prohibition, the bill proposes an amendment to the Commodity Exchange Act. Specifically, it would add a new subsection to Section 5c(c), which outlines the types of agreements, contracts, or transactions that can be traded:

• New Rule: No agreements or contracts related to sporting events or casino-style games may be made available for trading or clearing through registered entities.

Definitions Provided

The bill includes definitions for clarity:

• Casino-style game: Defined as any game typically associated with a casino, encompassing various types of gambling activities.
• Sporting event or athletic competition: Defined as any contest involving physical activity or skill where performance dictates the outcome, including all levels of sports.

Non-Preemption of State Laws

Importantly, the bill states that it does not override state laws. This means that if a state has its own regulations concerning sports betting or casino games, those laws still stand and are not affected by this federal legislation.

When the Prohibition Applies

The prohibition will apply to any agreements or contracts made after the bill is enacted, meaning that any new contracts involving the identified events or games will be subject to these rules.

Relevant Companies

None found