Sportsbooks May Try Wall Street Hedge

A cryptocurrency exchange has proposed a new way for sportsbooks to manage risk.

Digital asset trading platform ErisX asked the Commodity Futures Trading Commission to review whether casinos can use futures contracts to hedge against NFL bets. 

The contracts are designed to help prevent an imbalance in wagers. The CFTC will determine whether sportsbooks can protect against losses the way a financial business would use derivatives as a similar tool.

Futures contracts would provide sportsbooks with the ability to accept more tickets and larger wagers, and the trading would be limited to licensed sportsbooks.

Contracts on NFL games are the priority, but ErisX eventually wants to offer professional baseball and basketball contracts if the CFTC grants approval.

But approval is unlikely. Congress previously banned financial instruments involving gaming in 2010. Some, however, believe the current rules are due for a change.