From the archives of Mr. Wolfline

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As of the posting of this blog, June 7, 2021, the author (Mr. WolfLine) believes "sports betting investment contracts to be Securities and not Commodities. This is made abundantly clear in the SEC vs WJ Howey Supreme Court decision of 1946 and especially apparent in the extra language provided by Justice Frank Murphy in the majority opinion of the decision, as well as the Federal Securities Act of 1933, obvious Means and Instrumentalities of inter-state commerce, and additional existing Federal and State statutes and case law. Indeed, a better example than the players mentioned as constituents of tradeable commodities would be as stocks that are part of a broader sector ETF or index with weighting and beta components (this references the analogy of Daily Fantasy Sports markets relative to "Traditional Sports Betting Markets"). A good contemporary example would Be LeBron James is Amazon Stock and the L.A. Lakers are the Spider ETF called XLY (Consumer Discretionary) of which Amazon is 22% of the weighting. A commodity is not a security. However, an option on a future of a commodity is a security. A share of stock is a security. An option on a stock is also a security. A currency is not a security, but an option on a currency is a security. Options on anything are always securities and sports investment contracts exhibit all of the aspects of options including underlying price, strike price, implied volatility, time to expiration and all of the associated risk variables. To be honest, I do not care if the SEC correctly Federalizes these markets or the CFTC does. I only care that they are appropriately Federalized ASAP so that the current circuses that are transpiring with "states". "tribes", and "casinos" come to an immediate end since they have ZERO to do with these markets (except for the states in a supportive role as per Uniform Securities Act of 1956)"


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