February8, 2021proposal to create
cts on games faces
regulatory hurdlePHOTO ILLUSTRATION BY 731. PLAYER: GETTY IMAGES. DIE: SHUTTERSTOCKresmarket is often referred to as Wall
asino. Now, in a twist, there’s a proposal
nosstart trading futures.
marriage of the gambling industry and
nceis being pushed by a cryptocurrency
geand a Washington lawyer. Hoping to
iece of the billions of dollars flowing
e U.S. sports-betting industry, they’ve
futures contracts based on National
League games and are petitioning reg-
bless them.
ould be challenging: Congress banned
nstruments involving gaming in 2010. But
otersargue that the futures, tied to the out-
football game, have nothing to do with
Instead, they’re marketing the contracts
nagement tools for legal sportsbooks, akin
herfinancial derivative a business might
etpotential losses or protect against price
hey’re essentially asking regulators to think
operators as farmers, but instead of using
insurance against a bad crop they might
tohedge a Tampa Bay Buccaneers win.
g inthe football futures would be limited
d sportsbooks, vendors, and companies
tohelp set prices and take the other side
asmarket makers. Individuals and hedge
t may just want to speculate on the con-
uldbe barred from the market. “This is not
e for gaming,” says Thomas Chippas, chief
officer of ErisX, the exchange that wants
contracts. “There is underlying economic
s being hedged.”
formally asked the Commodity Futures
ommission in mid-December to approve22
Editedby
PatRegnierand
DavidRocksBloomberg BusinessweekTThhe
cccontra
hhighTTThhhefutur
SSStrrreet’sca
ttoleetcasin
TThem
hhiigghghfinan
eexxxcchang
rraaabap
iinntoothe
essiggned
FFooootbball
uullattorors to
Thhatco
fifinnaancialin
thheepromo
ccoommeofa
gagambling.
asriskman
to anyoth
usetooffs
swings.Th
ofcasinoo
futuresas
be tryingt
Trading
tolicensed
thatagree
oftradesa
fundsthat
tractswou
a substitut
executive
tolistthec
riskthatis
ErisXf
TradingCo