CFTC Extends Public Comment Period for Proposed Election Bets Ban

The US government agency that focuses on prosecuting and investigating commodities fraud, hedge fund fraud, energy manipulation and other crimes, the Commodity Futures Trading Commission (CFTC), announced it extended its public comment period for proposed changes to its rules related to event contracts.

In May, the agency confirmed its intention to ban derivative betting on sports and elections. The previous deadline for public comment was July 9, 2024.

However, the deadline was now extended for another month. This means that companies, organizations or other stakeholders can submit their comments through August 7. As of August 8, the period for public comment will close.

On Thursday, the CFTC explained that the extended deadline seeks to provide additional time for stakeholders or other interested persons to analyze its proposal. Moreover, the extended deadline would grant more time for comment submissions.

“The Commodity Futures Trading Commission today announced it is extending the deadline for public comment on a proposal to amend its event contract rules. The extended comment period will close on August 8, 2024. The CFTC is providing an extension to allow interested persons additional time to analyze the proposal and prepare their comments,“

reads a statement released by the CFTC

The Proposed Changes Seek to Define Gaming

The CFTC proposes changes to specific contracts that fall under the scope of the Commodity Exchange Act (CEA). The proposed rules call to prohibit wagers on events that may be “contrary to the public interest.” Moreover, the CFTC seeks to prohibit event contracts and derivatives related to terrorism, war and unlawful activities.

Notably, the agency seeks to define “gaming” under the CEA regulations, pointing to examples of the activity such as wagering on award contests, political events or sports competitions. If the proposed changes are approved, CFTC-registered organizations won’t be permitted to offer such trading options.

Sportsbooks across the US currently do not offer wagering on political events. Regardless, the popularity of such wagers is rising and a recent debate between President Joe Biden and former President Donald Trump saw the launch of a range of prop bets.

Such wagers were available via the popular sportsbook that currently isn’t regulated in the US, BetOnline.ag. Nearly 50 different wagers were available for the recent political debate.