Legal developments—including antitrust litigation and shifting regulatory frameworks—promise to reshape the relationships between leagues, athletes and investors. In 2025, trading activity for sports-related event contracts reached unprecedented levels. Despite their rapid growth and increasing mainstream acceptance, sports-related event contracts face significant legal uncertainty. Nonetheless, if the ultimate judicial determination is that the CEA does preempt state laws purporting to regulate sports-related event contracts, states would have to cede authority over those event contracts to the CFTC. Courts and regulators may finally decide whether sports‑related event contracts fall under state anti‑gaming laws or the CEA—a determination that could reset the sports wagering landscape.

Source: New York Times February 18, 2026 19:28 UTC