Case 1:25-cv-14723 Document 10-1 Filed 08/19/25 Page 21 of 34 PageID: 93
Amateur Athletic Fed’n , 244 F.3d 580, 594-95 (7th Cir. 2001) (holding that statute’s “exclusive
jurisdiction” provision preempts state law claims).
This express preemption provision includes event contracts, which are “transactions
involving swaps or contracts of sale of a commodity for future delivery,” over which the CFTC
has “exclusive jurisdiction” when “traded or executed on a [designated] contract market.”
7 U.S.C. § 2(a)(1)(A). The term “swap” includes “any agreement, contract, or transaction” that
(among other things) “provides for any purchase, sale, payment, or delivery (other than a
dividend on an equity security) that is dependent on the occurrence, nonoccurrence, or the extent
of the occurrence of an event or contingency associated with a potential financial, economic, or
commercial consequence.” Id. § 1a(47)(A)(ii). The term “swap” was added to the CEA in 2010
by the Dodd-Frank Act. See Pub. L. No. 111-203, §§ 721(a)(21) (adding the definition of
“swap” in 7 U.S.C. § 1a(47)), 722(a)(1)(D) (adding “swaps” to the exclusive jurisdiction
provision in 7 U.S.C. § 2(a)(1)(A)), 124 Stat. 1376, 1666, 1672.
Alternatively, or in addition to being swaps, event contracts may be considered
transactions in a type of intangible commodity that the CEA calls an “excluded commodity.”
See United States v. Wilkinson , 986 F.3d 740, 745 (7th Cir. 2021) (reviewing “excluded
commodities” under the CEA). An “excluded commodity” includes “an occurrence, extent of an
occurrence, or contingency (other than [certain exceptions]) that is (I) beyond the control of the
parties to the relevant contract, agreement, or transaction; and (II) associated with a financial,
commercial, or economic consequence.” 7 U.S.C. § 1a(19)(iv).
This is precisely what the event contracts traded on Kalshi’s exchange are. Sports-related
event contracts are within these statutory definitions of swaps and transactions in excluded
commodities because: (i) they are binary contracts that pay out depending on the occurrence or
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