Another interested party, the National Football League, sent a letter to the CFTC supporting its plan to prohibit sports-related event contract trading.The legal sports wagering industry is asking a federal regulator for another possible way to hedge its bets — and those of its customers.
There has been a big change since the CFTC's initial rule was enacted, the SBA notes. Most notably, the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act in 2018, paving the way for 38 states to authorize some form of event wagering. In other words, a sportsbook that has taken a ton of action on, say, Kansas City to win the Super Bowl could buy contracts for the same outcome, lessening the potential hit to their bottom line.
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