Robinhood and Fanduel are used in the gray area to bring sports and shares together

The world of sports betting and shares trading were not closely related.

The collection of these two industries together is one major product: events contracts.

In mid -August, Robenol (CabbotIt announced that it would start going out Events contracts for the college and professional football. A day later, the giant of the sports betting Vanuel (floodShe said that she would soon submit user events contracts on her Financial products ranging from stocks And bitcoin (BTC-Usd) To oil and gold.

Events contracts offer users a bilateral option yes or not at a specific event. For example: Who will win the game between Philadelphia Eagles and Dallas Copules on September 4? Will the price of gold closes above or less than $ 3500 an ounce tomorrow? and so on.

Products work in a gray area, because they are not considered bets or investments, and experts told Yahoo the financing of legal and regulatory landscapes that leave companies with a variety of roads to approach the market.

“The product you will see in prediction markets is already developing very quickly and what you see this season seems completely different through the next US Football Association season, if not sooner,” said Joel Simkins, an arrow research analyst who focuses on games and founder of XST Capital Group, a stock research analyst for a long time. “You have to ask yourself, where does this stop?”

The juvenile contracts are organized by the CFTC. In contrast, bets are organized by government games committees, while trading and investment fall under the jurisdiction of the Securities and Stock Exchange Committee (SEC).

To the American Games Association, the most prominent commercial group for the gambling industry, the juvenile contracts for sport are in fact a form of gambling and need to be organized in this way, instead of allowing it to work through what the AGA president and CEO Bill Miller called “Financial gaps.”

The Grand Sports League championships also expressed concern, as the American Professional League argues in A. May a message to Stile CFTC Head Caroline Fam said that “the risks of the integrity posed by the sports prediction markets are more important and more difficult in management than the organized legal sports gambling.”

And legal battles already appear.

On the same day, Robinhood announced the launch of its new products, the mediation platform A lawsuit against Navada and New Jersey gamesHubs Las Vegas and Atlantic City, respectively, claiming to try to prevent Robinhood events in their states.

If countries can organize some entities, but not all are related to these transactions, Such an organization would violate the exclusive CFTC jurisdiction And breaking what Congress intends to be a unified group of regulations for future commodity contracts and trading exchanges. “