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CFTC Opens the Door for Passive Software Providers in Derivatives Markets
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September 28, 2026
CFTC Opens the Door for Passive Software Providers in Derivatives Markets
By: John Mikuta
In a new no-action letter, the Commodity Futures Trading Commission (“CFTC”) recently opened the door for software developers building software to facilitate trading in derivatives and futures. The CFTC’s Market Participants Division (“MPD”) issued a no-action position providing that it would not recommend bringing an enforcement action against a “passive software provider,” or “PSP”, for failing to register as an introducing broker (“IB”) or associated person of an IB under the Commodity Exchange Act (“CEA”).[1] As background, the CEA requires any person who, for compensation or profit, “is engaged in soliciting and in accepting orders” for futures and swaps to register as an IB.[2] Individuals performing that work for an IB must also register themselves as associated persons.[3] The CFTC…
Trust the Future You Trade: Lessons About Prediction Market Surveillance from the DACOM Summit
September 23, 2026
Trust the Future You Trade: Lessons About Prediction Market Surveillance from the DACOM Summit
By: John Mikuta
Prediction markets are no longer a niche offering confined to a small corner of the internet. The rapid growth of prediction markets has launched them into the mainstream as a meaningful part of the financial ecosystem. But with that growth comes many of the same market integrity and compliance challenges that more traditional financial markets have long encountered. Prediction markets have faced public scrutiny over…
High Wire Act
September 22, 2026
High Wire Act
By: James Trusty
The federal statute known as the Wire Act (18 U.S.C. § 1084) has had a tumultuous history. For many years, the DOJ interpreted it to include restrictions on both sporting events and non-sporting contests. That changed dramatically in 2011, when the Office of Legal Counsel (“OLC”), responding to states seeking clarification before establishing state lotteries, published an analysis of the Wire Act. After a thorough…
Surging Sportsbook Signups Illustrate Need for Ubiquitous Legal Gaming Markets
September 29, 2023
Surging Sportsbook Signups Illustrate Need for Ubiquitous Legal Gaming Markets
By: Sara Dalsheim
The kickoff of the NFL 2023-2024 season has held many surprises: drastically favored teams lost to their underdog opponents; surprise rookies broke out like Bijan Robinson and Puka Nacua; sports media outlets aggressively reported on the Taylor Swift-Travis Kelce courtship; and much more. What has not been surprising, however, is the surge of signups on legal sports betting websites. Indeed, the influx of new users…
A Cautionary Tale Courtesy of Fortnite
September 21, 2023
A Cautionary Tale Courtesy of Fortnite
By: Steven Eichorn
A fast-growing segment of online gaming is the in-game purchase on (sometimes free) games/apps in exchange for virtual items. The virtual items can be mere cosmetic game enhancements, features that increase a player’s likelihood of success, and many other options. Because these virtual items are purchased with real world funds, companies must be vigilant in employing good practices such as clear and conspicuous disclosures of…
Navigating the High-Stakes World of Online Gaming Advertising: Policies, Permissions, and Enforcement
August 28, 2023
Navigating the High-Stakes World of Online Gaming Advertising: Policies, Permissions, and Enforcement
By: Sara Dalsheim
A top concern of online gaming regulators is the control and dissemination of advertising. In connection with these concerns sites like Meta, X (formerly known and commonly referred to as Twitter), and Google have released online gambling advertising policies and requirements. To run online gambling and gaming advertising on Meta / Facebook users are required to obtain written permission to promote online gambling and gaming.[1]…
G2E 2023: Outlook and Trends
August 16, 2023
G2E 2023: Outlook and Trends
By: Steven Eichorn
This year’s G2E (the premier gaming conference in North America), held annually in Las Vegas, Nevada (October 9-11, 2023 this year) is shaping up to once again be the premier conference for the gaming industry. The expected number of worldwide attendees from the global gaming industry is over 25,000 and it promises to once again bring together the entire gaming industry under one roof. It…
NCLGS Provides Clarity on their Responsible Gaming and Problem Gambling Resolution
August 8, 2023
NCLGS Provides Clarity on their Responsible Gaming and Problem Gambling Resolution
By: Sara Dalsheim
This past July the National Council of Legislators From Gaming States (NCLGS) Summer Meeting took place in Denver, Colorado. The Meeting occurs twice a year and brings together state legislators, regulators, attorneys, and industry representatives to discuss and confer on developments within the gaming industry. Throughout the Meeting there was an emphasis on responsible gaming and combatting problem gambling. During the first full day of…
