Case: 25-7187, 02/17/2026, DktEntry: 37.2, Page 30 of 41
2d 416, 433 (M.D. Pa. 2013) (summarizing the Commonwealth’s allegations that the sanctions would cause a loss of football-related hospitality revenue for surrounding businesses). For these reasons, hotels likely adjust pricing models, restaurants expand staffing to accommodate increased demand, vendors increase supply orders, and cities allocate resources to accommodate projected crowds. All of these decisions pose economic risk, which is precisely the type of economic exposure that derivatives markets are designed to mitigate. 13 The issues presented on appeal do not require this Court to resolve the outer limits of the definition of a swap or engage in line drawing between a swap and a wager. That line drawing exercise presents complicated fact questions concerning the exact structure and mechanics of the instruments, who is the price maker, the difference between an open exchange and a bilateral arrangement, and unrelated legal questions, including the applicability of the CEA to purely intrastate transactions, among others. It is sufficient to resolve this case that the transactions conducted on a CFTC-registered DCM qualify as swaps under the CEA.
13 See, e.g., KalshiEx’s “February 2026 Sportsbook Hedging Rebate Program” filing with the CFTC, available on the CFTC’s website at: https://www.cftc.gov/IndustryOversight/IndustryFilings/TradingOrganizationRules /59640 (last visited 2/17/2026).
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