Senate committee approves bill that bans futures trading in movie box office receipts

Senate committee OKs bill that bans movie futures

LOS ANGELES — A proposed ban on betting on movie box office receipts took one step closer to becoming law.

A U.S. Senate committee on Wednesday passed a financial regulatory reform bill that supports Hollywood in outlawing the trading of futures contracts based on predicted movie ticket sales.

The bill was backed by Democratic Senator Blanche Lincoln, the chair of the committee.

The Motion Picture Association of America applauded the committee’s work. It has called such proposals a form of legalized gambling.

This month, federal regulators approved the creation of two exchanges that would trade in movie futures, but did not OK specific contracts. That means trading cannot yet take place.

A House committee is to hold a public hearing on the issue on Thursday.