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28 September 2023

When Betting Crosses Regulatory Lines

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Allen Matkins Leck Gamble Mallory & Natsis LLP
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Allen Matkins Leck Gamble Mallory & Natsis LLP logo
Allen Matkins, founded in 1977, is a California-based law firm with more than 200 attorneys in four major metropolitan areas of California: Los Angeles, Orange County, San Diego, and San Francisco. The firm's areas of focus include real estate, construction, land use, environmental and natural resources, corporate and securities, real estate and commercial finance, bankruptcy, restructurings and creditors' rights, joint ventures, and tax; labor and employment, and trials, litigation, risk management, and alternative dispute resolution in all of these areas. For more information about Allen Matkins please visit www.allenmatkins.com.
Earlier this week, Suzanne Cosgrove wrote about the Commodity Futures Trading Commission's decision to prohibit Congressional Control Contracts, which it described as "cash-settled...
United States Finance and Banking
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Earlier this week, Suzanne Cosgrove wrote about the Commodity Futures Trading Commission's decision to prohibit Congressional Control Contracts, which it described as "cash-settled, binary (yes/no) contracts based on the question: “Will be controlled by for ?” The CFTC disapproved of Congressional Control Contracts on the basis that they involve "gaming". While neither the Commodity Exchange Act nor the CFTC's regulations define "gaming", the CFTC concluded that Congressional Control Contracts involve "gaming" because "taking a position in the Congressional Control Contracts would be staking something of value upon the outcome of a contest of others".

 Some especially mnemonistic readers will recall this blog post from a decade ago discussing the overlap among wagering, insurance, bucketing and the securities laws.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
28 September 2023

When Betting Crosses Regulatory Lines

United States Finance and Banking
Contributor
Allen Matkins Leck Gamble Mallory & Natsis LLP logo
Allen Matkins, founded in 1977, is a California-based law firm with more than 200 attorneys in four major metropolitan areas of California: Los Angeles, Orange County, San Diego, and San Francisco. The firm's areas of focus include real estate, construction, land use, environmental and natural resources, corporate and securities, real estate and commercial finance, bankruptcy, restructurings and creditors' rights, joint ventures, and tax; labor and employment, and trials, litigation, risk management, and alternative dispute resolution in all of these areas. For more information about Allen Matkins please visit www.allenmatkins.com.
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