The Event Contract Enforcement Act prohibits trading platforms regulated by the Commodity Futures Trading Commission from offering contracts that bet on certain events, including terrorism, assassinations, wars, illegal activities, election outcomes, and government actions. The bill also allows individual states to opt out of the prohibition on gaming contracts, meaning states could permit their residents to trade on sports, games, and other competitions if they choose. The legislation applies broadly to any "event contracts" that speculate on occurrences rather than traditional commodity price changes, and grants the regulatory commission authority to ban additional contract types it deems contrary to public interest. The law takes effect 180 days after passage, giving markets and regulators time to implement the new restrictions.
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