event contracts are related to the outcome of the games, not the occurrence or nonoccurrence of the games. In Kalshi’s own words, the games upon which its sports event contracts are based have “no inherent economic significance” or “any real economic value.” See Transcript of Motion Hearing at 15, KalshiEX LLC v. CFTC , No. 1:23-cv-03257-JMC (D.D.C. May 30, 2024). Kalshi’s sports event contracts are not hedging opportunities for interested parties to supplement the risk of a cancelled sporting event; instead, they are speculative wagers on the outcome of that sporting event. They are therefore not dependent upon, or otherwise related to, any potential “financial, commercial, or economic consequence.” Furthermore, the other provisions within the definitions of “swap” and “excluded commodity” provide further insight into Congress’s intention when adding the terms to the CEA. See 7 U.S.C. §§ 1a(19)(i)–(iii), (47)(A)(i), (iii)–(vi). Specifically, under the canon of noscitur a sociis , the potential “financial, economic, or commercial consequence[s]” required to meet the definition of “swap” or “excluded commodity” must be related to rates, currencies, commodities, securities, instruments of indebtedness, indices, and other such quantitative measures. Id. The outcome of a sporting event is not so limited.
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