The US Securities and Exchange Commission has cleared Cboe's application to list binary options tied to corporate performance. Investors will be able to trade contracts on specific results — Apple's iPhone sales, YouTube's advertising revenue, Nvidia's data centre income. Cboe plans to launch contracts on 23 companies, and Robinhood will be the first retail broker. Both promise zero commissions until the end of 2026.
Unlike Kalshi and other venues under CFTC supervision, Cboe's products will be regulated by the SEC as securities. That creates an alternative regulatory model for event-based trading while the legality of sports contracts remains in dispute. SEC chair Paul Atkins said the approval does not close the question of CFTC jurisdiction over such instruments.
Kentucky courts and new lawsuits
A federal judge in Kentucky recommended returning the state's cases against Kalshi and Polymarket to state court. The decision rests on a September precedent from Kalshi cases in Tennessee and Ohio. Lawyer Daniel Wallach noted that a remand to state jurisdiction could bring injunctions and geoblocking, as happened in Nevada, Michigan and Washington.
Underdog filed suit in federal court on 13 October after the Tennessee regulator ordered it to stop operating. The state threatened fines, sanctions and the revocation of its fantasy sports licence. Underdog argues that gambling laws do not extend to its contracts.
In New York, a court asked the CFTC and the state to explain how the commission's new rules of 9 October affect a request for a preliminary injunction. Federal authorities must set out their position by 16 October, New York by 23 October. The case could prove decisive in defending Kalshi against suits from the state attorney general.
