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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…
Pennsylvania Finally Drops Under 5% Shareholder Licensee Registration Requirement
April 25, 2022
Pennsylvania Finally Drops Under 5% Shareholder Licensee Registration Requirement
By: Steven Eichorn
The Pennsylvania Gaming Control Board (Board) issued a letter to enact a policy change to raise the ownership interest threshold from one percent to five percent for ownership interests held in privately-owned entities. This immediately impacts the licensing requirements of “principal” applications in Pennsylvania and is effective for both existing licensees (or pending applications) and to future applicants. Who Does This Apply To? Further, it…
State Securities Regulators Intervene In Virtual Casino NFT Sales
April 18, 2022
State Securities Regulators Intervene In Virtual Casino NFT Sales
By: Jake Gray
State regulators in three states took the first steps in regulating non-fungible tokens (“NFTs”) as securities, issuing cease-and-desist orders against the online casino developer Sand Vegas Casino Club (“Sand Vegas”) and its co-founders for allegedly offering unregistered securities and violating various other securities-related regulations. As we have written, NFTs use smart contracts to offer holders novel functionality, like granting them access to certain services, events,…
ADA Accessibility Guidance for the iGaming Industry
April 5, 2022
ADA Accessibility Guidance for the iGaming Industry
By: Jake Gray
The broader gambling industry is transitioning into an increasingly online and mobile-based industry. Proliferation and popularity of online and mobile sports betting have evinced a burgeoning consumer demand for web-based gaming options. As the internet gaming (“iGaming”) market expands, gaming companies need to follow the Department of Justice’s (“DOJ”) new Guidance on web accessibility under the Americans with Disabilities Act (“ADA”) to ensure customers’ adequate…
Fantasy Sports Passes the Test: New York High Court Rules Fantasy Sports Are Legal
March 22, 2022
Fantasy Sports Passes the Test: New York High Court Rules Fantasy Sports Are Legal
By: Steven Eichorn
In the lull of a midweek break from March Madness, New York’s highest court made noise Tuesday when it finally handed down its fantasy sports ruling, confirming that fantasy sports contests are legal in the state. Fantasy sports players might not have even noticed it was a question: Tens of millions of people play fantasy sports in the United States and Canada alone, and the…
Advertising and Marketing in Ontario’s New Online Gambling Market
March 16, 2022
Advertising and Marketing in Ontario’s New Online Gambling Market
By: Sara Dalsheim
On April 4th, 2022, Ontario’s new internet gambling (igaming and sports betting) market will launch. To support operators in their advertising efforts prior to the launch, the Alcohol and Gaming Commission of Ontario (AGCO) published highlights from the Registrar’s Standards for Internet Gaming. These standards also address what affiliates and third parties must do to operate in the Ontario market, and reveal a standard more…
