Case: 25-7187, 02/17/2026, DktEntry: 37.2, Page 29 of 41
B. Sports Event Contracts Are Associated with Potential Financial, Economic, and Commercial Consequences. As the statutory definition makes clear, the relevant inquiry is intentionally broad. The statute is framed in expansive terms, requiring only that the contract be “associated with potential financial, economic, or commercial consequence.” That definitional framework reflects Congress’s recognition that derivatives markets serve a wide spectrum of market participants whose economic exposures are not limited to any specific market participant. See Alabama Power Co. v Costle , 636 F.2d 323, 353 (D.C. Cir. 1979) (recognizing that “potential . . . will always and inherently exceed actual”). Because the statute does not demand certainty, sports event contracts fall comfortably within the statute’s reach. Broadly speaking, sporting events are economic enterprises that generate billions of dollars in economic activity and materially affect both regional and national markets. See Ryan Grandeau, Securing the Best Odds: Why Congress Should Regulate Sports Gambling Based on Securities-Style Mandatory Disclosure , 41 Cardozo L. Rev. 1229, 1247 (2020). Stadiums function as regional economic anchors around a network of businesses, including hotels, restaurants, transportation providers, retailers, and event management firms. See, e.g ., Los Angeles Mem’l Coliseum Comm’n v. NFL, 726 F.2d 1381, 1397 (9th Cir.1984) (discussing claim that a professional sporting team’s presence generates local business activity) and Pennsylvania v. Nat'l Collegiate Athletic Ass’n , 948 F. Supp.
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