Event Contract
A financial derivative whose value depends on whether a specific event occurs or on its outcome, and which is generally subject to federal derivatives regulation.
Timeline (last 90 days)
In the United States, event contracts traded on a designated contract market (DCM) are generally governed by the Commodity Exchange Act and regulated by the CFTC.
Kalshi offers trading on outcomes such as political and economic events in the form of "event contracts," and argues that its products are federally regulated financial derivatives rather than gambling.
Event contracts are binary-option-style contracts whose underlying is the outcome of a specific event; users buy "yes" or "no" shares at a price, and once the event outcome is determined, each contract pays $1 for the correct direction and zero for the wrong direction.
The CFTC has exercised jurisdiction over event contracts, but some states consider them essentially a variant of sports betting or casino games.
All Facts (4)
In the United States, event contracts traded on a designated contract market (DCM) are generally governed by the Commodity Exchange Act and regulated by the CFTC.
50%UnverifiedKalshi offers trading on outcomes such as political and economic events in the form of "event contracts," and argues that its products are federally regulated financial derivatives rather than gambling.
50%UnverifiedEvent contracts are binary-option-style contracts whose underlying is the outcome of a specific event; users buy "yes" or "no" shares at a price, and once the event outcome is determined, each contract pays $1 for the correct direction and zero for the wrong direction.
50%UnverifiedThe CFTC has exercised jurisdiction over event contracts, but some states consider them essentially a variant of sports betting or casino games.
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