H.R. 7840 — Event Contract Enforcement Act

This section revises the Commodity Exchange Act (CEA) prohibition on event contracts contrary to the public interest by replacing prior clauses (i) and (ii) of Section 5c(c)(5)(C) with a new clause (i) making it unlawful for registered entities (i.e., designated contract markets and swap execution facilities) to list or offer for trading any agreement, contract, transaction, or swap in an excluded commodity based on an occurrence or contingency—other than a price, rate, value, or level change in a CEA-defined commodity—related to (I) federally or state unlawful activity; (II) terrorism; (III) assassination; (IV) war; (V) gaming; (VI) any federal, state, or local election result (including ballot initiatives or referenda); (VII) conduct by or in any federal, state, or local government level, branch, instrumentality, or personnel; or (VIII) other Commission-determined contrary-to-public-interest activity. It exempts clause (i)(V) (gaming) for state conduct expressly exempted by state law and adds clause (v) defining "gaming" as any aspect of a live, simulated, or virtual physical or mental challenge or game of chance. (Thus, CEA-registered exchanges may not offer "event contracts"—i.e., derivatives based on specified non-price contingencies—such as election outcomes or terrorist acts.) The amendments take effect 180 days after enactment.