CURTIS, CORTEZ MASTO PUSH CFTC FOR ANSWERS ON ENFORCEMENT OF ILLEGAL GAMING IN EVENT CONTRACTS

Washington, D.C. – U.S. Senators John Curtis (R-UT) and Catherine Cortez Masto (D-NV) led 4 of their Senate colleagues in a letter to Commodity Futures Trading Commission (CFTC) Acting Chair Caroline Pham reminding the Commission sports activities betting is regulated by states and tribes, not the CFTC. The Senators underscore that by implicitly permitting some corporations to provide sports activities betting actions as “event contracts,” the CFTC is stopping enforcement of state and tribal gaming legal guidelines which inappropriately permits sports activities betting nationwide.

“The CFTC is expressly prohibited from allowing event contracts that involve gaming, are unlawful under federal or state law or are contrary to the public interest,” wrote the Senators. “Despite this prohibition, the CFTC is permitting sportsbook gaming to inappropriately designate themselves as ‘event contracts’ with oversight by the CFTC. For example, some companies are claiming to allow legal sports betting in all fifty states. This action – and the CFTC’s unwillingness to stop it – contradicts both the letter and the intent of the law. The Commission cannot sidestep its statutory obligations by declining to enforce the prohibitions that Congress enacted. Doing so undermines the sovereign authority of states and tribes to regulate gambling within their jurisdictions and risks federalizing an area of law that the Supreme Court has held is reserved to the states.”

“The continued availability of illegal sport event contracts in all 50 states further reaffirms the need for the CFTC to enforce its own regulations mandated by Congress. Moreover, by claiming to be federally regulated by the CFTC, issuers of sports event contracts can avoid myriad state laws, including licensing and background investigations, minimum age requirements, federal anti-money laundering rules, and consumer protections such as addiction warnings and integrity monitoring. These rigorous standards are required by state and tribal licensed entities which the CFTC does not have the authority or the capacity to replicate,” the Senators concluded.

Read the complete letter here. Additional signatories embody Senators Ruben Gallego (D-AZ), Alex Padilla (D-CA), Adam Schiff (D-CA), and Elissa Slotkin (D-MI).