Case: 25-7516, 01/23/2026, DktEntry: 33.1, Page 24 of 110
States and the District of Columbia allow some form of sports betting, either
statewide or only on tribal lands. See Am. Gaming Ass’n, State of the States
2025 , at 12-13 (May 13, 2025), perma.cc/J27S-WLSB (AGA, States ). Other
States, including California, Hawaii, and Utah, completely prohibit sports
betting. See id.
As the Supreme Court has recognized, regulating gaming is within
the traditional “police powers of a state,” Ah Sin v. Wittman , 198 U.S. 500,
505-06 (1905), and federal law “respect[s] the policy choices of the people of
each State on the controversial issue of gambling,” Murphy , 584 U.S. at 484.
2. The CFTC Regulates Commodity Futures Trading The CFTC regulates trading in commodity derivatives—financial in-
struments that companies use to manage risk. It is not a gaming regulator.
In 1936, Congress enacted the CEA to regulate trading in futures in
wheat, corn, and other agricultural commodities. Pub. L. No. 74-675, § 3,
40 Stat. 1491, 1491 (1936). A “future” is a contract to buy or sell a quantity
of a commodity at a specified price on a future date. CFTC v. Noble Metals
Int’l, Inc. , 67 F.3d 766, 772 (9th Cir. 1995). Businesses use futures to hedge
against price volatility. Id. Futures can be traded on organized markets or
entered into directly between two parties. Id. at 766. The CEA initially
authorized the Secretary of Agriculture to register “designated contract
markets” (DCMs) for futures trading. 7 U.S.C. § 7 (1936).
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