Summary of H.R. 7477: Banning Commodity Transactions in Sports and Casino Gaming

Overview

H.R. 7477 is a bill introduced in the U.S. House of Representatives on February 10, 2026. The purpose of the bill is to amend the Commodity Exchange Act to prohibit entities registered under the Act from engaging in transactions involving sporting event or casino-style gaming contracts.

Key Provisions

The main provisions of the bill are:

1. Prohibition on Certain Commodity Transactions: The bill would prohibit any entity registered under the Commodity Exchange Act from engaging in transactions involving:

   • Contracts based on the outcome of sporting events
   • Contracts based on the outcome of casino-style gaming activities

2. Enforcement and Penalties: The bill would direct the Commodity Futures Trading Commission to enforce the prohibition and impose penalties on any registered entity that violates the ban.

Potential Impact

If enacted, this legislation would have the following impacts:

• Commodity Market Restrictions: Entities such as commodity exchanges, brokers, and traders registered under the Commodity Exchange Act would be barred from offering or participating in transactions tied to sports events or casino gaming.

• Reduced Gambling-Related Commodity Trading: The bill aims to limit the ability of the commodity markets to be used for gambling-related activities, which some policymakers view as outside the intended purpose of the commodity trading system.

• Enforcement by the CFTC: The Commodity Futures Trading Commission would be tasked with monitoring compliance and imposing penalties on any registered entities that violate the new restrictions.

Procedural Considerations

• The bill was introduced in the House of Representatives and has been referred to the House Committee on Agriculture for consideration.
• As an amendment to the Commodity Exchange Act, the bill would need to pass both chambers of Congress and be signed into law by the President to take effect.
• The timeline for potential action on the bill is uncertain, as it depends on the committee's schedule and broader legislative priorities.