Case 1:25-cv-02152-ESK-MJS Document 15 Filed 04/18/25 Page 16 of 51 PageID: 137
Operators also must comply with the constitutional mandate prohibiting sports wagers on a college sports events taking place in New Jersey or in which a New Jersey college team participates. N.J. Stat. Ann. § 5:12A-10. The Division conducts investigations, audits, and enforcement actions to protect the public by ensuring that operators follow the law. See id. § 5:12-76. B. The Commodity Exchange Act. Federal regulation of the derivatives market is, by comparison, a more re- cent development. In 1936, Congress enacted the CEA, which delegated certain regulatory responsibilities for commodities trading to the Attorney General and the Secretaries of Agriculture and Commerce. See Pub. L. No. 74-675, 49 Stat. 1491 (1936) (codified as amended at 7 U.S.C. §§ 1–27f). In so doing, Congress sought to establish a regulatory framework for commodities contracts to “manag[e] and assum[e] price risk,” 7 U.S.C. § 5(a), to “deter and prevent price manipulation,” “ensure the financial integrity of all transactions,” and protect “all market participants from fraudulent or other abusive sales practices” through “a system of effective self-regulation,” id. § 5 (b). In 1974, the CEA was amended to create the CFTC and grant it exclusive jurisdiction over transactions regulated by the CEA. Commodity Futures Trad- ing Commission Act of 1974, Pub. L. No. 93-463, § 201, 88 Stat. 1389, 1395 (1974). The Dodd-Frank Wall Street Reform and Consumer Protection Act amended the CEA again in 2010 to give the Securities Exchange Commission exclusive jurisdiction over security-based swaps and the CFTC exclusive juris- diction over all other swaps. Pub. L. 111-203, § 722, 124 Stat. 1376, 1672 (2010).
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