California’s US Senators, Barbara Boxer and Dianne Feinstein, also urged caution by the commission, as did US Representatives Lamar Smith of Texas, Robert Goodlatte of Virginia and Henry Waxman of California.
The “contract market is not warranted where, as here, its sole purpose is to provide a trading platform for instruments that do not constitute legitimate futures or option contracts,” said the letter sent by the MPAA coalition. “But [they] are in essence wagers that are susceptible to manipulation. Rather than providing a real and useful means for hedging risk or price discovery, these instruments will be harmful and burdensome to the motion picture.”
The letter charged that establishing online box office wagering marketplaces will be “detrimental to the industry they ostensibly are created to serve.”