A recent court ruling has determined that contracts based on the outcome of sports games are not considered swaps and therefore do not fall under the jurisdiction of the Commodities Exchange Act. The court clarified that the game itself is the event, not its outcome, which means these contracts are not subject to regulation by the Commodity Futures Trading Commission (CFTC). This decision reinforces the position that states retain the authority to regulate sports wagering, rejecting the notion that such contracts could be federally regulated under the CFTC's purview. The ruling is significant for the sports betting industry, as it confirms the current regulatory framework where states have primary oversight.