Judge: IGRA Overrides UIGEA, Kalshi Betting Illegal on Tribal Lands
Judge Conley: IGRA > UIGEA "Just because Kalshi’s conduct is not prohibited by the UIGEA, does not make its offering of sports betting contracts legal anywhere, much less on Indian lands where it is expressly prohibited." https://t.co/dfTcLnKhHu
Tribal Nation Poised to Halt Kalshi Sports Betting
"A tribal nation is likely to succeed in blocking Kalshi from offering sports contracts on its land, a federal judge said in what appears to be the first ruling of its kind against the prediction market operator." Via @jjmccorvey https://t.co/GoZQFP9tFQ
Judge Orders Kalshi to Preserve Online Betting Evidence
Wisconsin federal judge tells Kalshi to preserve evidence: "Kalshi is strongly encouraged to monitor and preserve where online sports betting is occurring by whatever means available, including tracking originating bets, URLs, financial transactions or other means." https://t.co/qUkpZ7crZx
Judge Warns Absurd Outcomes From Expanding Swap Definition
Wisconsin federal judge highlights the "absurd results" that could flow from defining a 'swap' to include sports-event contracts," noting that the CEA makes it "unlawful for any person to enter into a swap" outside of a DCM. https://t.co/FLWyiU7RPy
Derivatives Pros Label Michael Selig the Market Joker
“Miller said out loud what a growing number of derivatives professionals, people who actually hedge corn, crude, Treasuries, and currencies for a living, have been muttering for months. Michael Selig is in fact behaving like the joker in a deck...
Michigan Leverages Prior Case to Defend Gambling Authority
One of @DanaNessel's prior cases may help Michigan win its motion to remand vs. Kalshi and nullify preemption claims in other PM cases. Citing Murphy, a MI federal court observed in Curtis v. Nessel that "states have the inherent authority...
Four States Rapidly Pass Anti‑Sweepstakes Casino Bills
“Pressure on sweepstakes casinos is no longer coming one state at a time. In just a matter of weeks, Oklahoma, Tennessee, Louisiana, and Iowa have all pushed anti-sweepstakes casino bills through their legislatures and sent them to their governors’ desks.”...
Ninth Circuit Rejects Tribes' Request for Same Panel
Ninth Circuit denies California Tribes' motion to reassign their prediction markets case to the same 3-judge panel which just heard oral argument in the appeal filed by Kalshi, Robinhood and Crypto, citing "significant differences" between the two appeals (i.e., IGRA...
Outside Counsel Crucial: NJ's PASPA Victory Highlights Need
New Jersey won the PASPA case because it had Ted Olson on its side. And even he went 0-7 before winning at SCOTUS. It is beyond reckless for the States (besides NV and OH) not to be using outside counsel...
Maryland's Swap Argument Weakens Its Gambling Defense
It went very well at the beginning for Maryland — the panel was hammering the “gambling” similarities and Rule 40.11(a)(1)— but on MD's turn it was all about the broad definition of a “swap” and I’m not sure MD pushed...
Judge Challenges Self‑certified Compliance Under Rule 40.11
Judge Benjamin: "Rule 40.11 prohibits 'gaming' contacts. So how is it that you say that you self-certify that you are in compliance?
Judge Questions Absence of Rules for Sports Contracts
Judge Gregory: "Any idea why there are no rules [for sports-event contracts] at this point?"
Kalshi Files Merits Brief in Ohio Injunction Appeal
Kalshi has filed its initial merits brief in the 6th Circuit expedited appeal of the Ohio federal district court's order denying Kalshi's motion for preliminary injunction. Ohio's response brief is due June 4th. https://t.co/CVkmlyfb8N
CA9 Decision Determines Future State Court Enforcement
Underscores the importance of the CA9 decision. If CA9 affirms, the AZ ruling for the CFTC would likely be nullified and all CA9 states (even CA) could pursue state court enforcement vs. PMs. Conversely, if CA9 reverses, state court enforcement...
Maryland Submits
On the eve of tomorrow's Fourth Circuit oral argument in Kalshi v. Maryland, the State of Maryland has filed recent decisional law from the CA6, SD OH and WD MI preliminarily rejecting PM's federal preemption theory as "supplemental authority" for...
Judge Sends Washington Kalshi Lawsuit Back to State Court
A federal judge has remanded the State of Washington's civil enforcement action against Kalshi back to state court, finding "no substantial federal issue" and noting that the complaint "only targets activities determined to be gambling under state law." https://t.co/rklwPkT3Ga
Louisiana Pushes Sweeping Gambling Crackdown, Treating Illegal Games as Racketeering
Louisiana lawmakers send sweeping gambling crackdown bill to Governor Landry for signature. The bill would treat illegal gambling operations, including sweepstakes casinos, as racketeering offenses carrying severe penalties. https://t.co/8ojcmpJG0t
Clear Sports Betting Language Boosts MA, Highlights State Courts
When the justices point to the need for clear language on sports betting, refer to major-questions doctrine, elephants in mouseholes & Rule 40.11, you know it was a good day for MA. And another reminder for states of the value...
Judge Maloney to Hear Michigan AG Remand Motion June 25
The oral argument on the Michigan AG's motion to remand its civil enforcement action vs. Kalshi back to state court will be heard by Judge Maloney on June 25th at 1:30. The States have a perfect record on motions to...
CFTC Denied Front-Row Seat in SDNY Prediction Market Cases
CFTC loses battle to jump "to the front of the queue" in SDNY prediction market cases, as Judge Marrero grants the NYAG's request for a 30-day extension of time to respond to the CFTC's motion for preliminary injunction, putting it...
Justice Kafker Says Lawyer Is Swimming Upstream
“I just feel like you’re swimming upstream here,” Justice Scott Kafker told the lawyer arguing for federal preemption.
Kalshi
Kalshi: “Let’s just stipulate that these contracts involve ‘gaming.” Justice Dewar: “Well, actually, you certified to the CFTC that they do not involve gaming.’” Ouch. Rule 40.11(a)(1) surfaces again.
Missed Live Argument, Catching Replay of Massachusetts V. Kalshi
Picked an ill-advised time for air travel without WiFi. Missed the entire oral argument in Massachusetts v. Kalshi. Will watch the replay shortly. Looking forward to it. This is a venue (state court civil enforcement) that should be favorable for...
Justice Kafker Questions Congress’ Intent to Curb State Betting Authority
“Justice Scott Kafker expressed doubt that Congress meant to eliminate states' ability to regulate sports wagering when it moved to reform how swaps were regulated through Dodd-Frank, a law enacted in the wake of the 2008 financial crisis.”
NY AG: Coinbase Misreads Wire Act Safe Harbor
The New York AG's Office calls out Coinbase for falsely insinuating that the Wire Act 'safe harbor' provision insulates 'wagers' across states where betting is legal. The Wire Act safe harbor (1084(b)) extends only to "information," not the wagers themselves....
NY AG Sends Coinbase, Gemini Cases Back to State Court
NEW: The NewYork AG has moved to remand the civil enforcement actions against Coinbase and Gemini back to state court, says no valid basis for removal exists since claims arise under state law; and complete preemption, Wire Act safe-harbor and...
CFTC
NEW: The CFTC has filed a motion for preliminary injunction against the New York Attorney General, asking SDNY judge Victor Marrero to issue an order prohibiting the NYAG's Office from pursuing criminal or civil enforcement actions over the offering of...
North Carolina Moves to Ban Prediction Markets Outright
A bill has been filed in the North Carolina General Assembly to prohibit prediction markets. Vague would be an understatement. (h/t @CarolinaDerby) https://t.co/DK1UiStLqm
Midwest and Coast States Push Kalshi Remand Motions
Michigan, New York and Washington, take ✍️. MI and WA have motions to remand pending in their lawsuits vs. Kalshi, and NYAG will be filing one soon. Illinois remand order--albeit, in a SOA case vs. Kalshi--is relevant legal authority. https://t.co/zCYNheV3uA
Michigan AG Challenges Kalshi's Preemption Defense, Demands State Court Remand
Borrowing a line from MA federal judge Richard Stearns (who remanded Kalshi back to state court in MA), Michigan AG @DanaNessel asserts that Kalshi's "plain vanilla" preemption defense is insufficient to establish "complete preemption," seeks similar state court remand in...
Nevada Court Bars Kalshi From Offering Event Contracts to Residents
Nevada state court enters preliminary injunction barring Kalshi from offering sports-, election-, and entertainment-related event contracts to "Nevada residents" (not "in Nevada"), gives Kalshi until May 4th make necessary technological enhancements to comply with the order. https://t.co/BOYm9fCXgr
Two Upcoming Oral Arguments on Sports-Event Contracts
Reminder: there are 2 oral arguments next week in prediction market appeals. Monday: Mass. Sup. Ct. (9 am) (Commonwealth v. Kalshi) Thursday: 4th Circuit (9:30) (Kalshi v. Maryland) The question on appeal in both cases focuses only on sports-event contracts. https://t.co/6kHZtxozi2
CFTC Accused of Aggressive Forum‑shopping Across Districts
The CFTC filed its federal lawsuit vs. Wisconsin in the ED WI even though the 3 removed PM lawsuits are in the WD WI (home of the state capital). It's almost as if the CFTC is forum-shopping to ensure two...
Targeting Only Democratic‑Led States, 5 of 5 Wins
Continuing its battle only against states with Democratic Governors and Attorney Generals. 5 out of 5 so far (NY, AZ, CT, IL & WI). That is not a coincidence.
SCOTUS Likely to Uphold State Sports Betting Authority
"Wallach puts the probability at 70-80% that SCOTUS will side with state regulators. The alternative would contradict the 2018 PASPA repeal that empowered states to regulate sports betting." https://t.co/dBl2sp7OO2
NY Courts May Force Prediction Markets to Repay Illegal Profits
“But in New York, the stakes might be higher for prediction markets should the courts not rule in their favor. Companies based in New York can be required to pay restitution of illegal profits to their customers across the country.”...
CFTC Staff Down 24% Under Trump, Enforcement at Risk
“The Commodity Futures Trading Commission workforce has dropped by 24% since President Donald Trump returned to office, according to the latest available data, raising concerns about its ability to police insider trading and protect consumers.” https://t.co/yJdy3vYjRg
Six Years Fighting PASPA Undermine 2010 Legalization Claim
“If Congress really intended to legalize nationwide sports betting in 2010 (as proponents of prediction markets claim), then why did we spend six years trying to overturn PASPA?” https://t.co/MCmzlkEL39
Judge Declares Swaps Remain Under State Law Post‑Dodd‑Frank
The judge who is presiding over the Kalshi v. New York lawsuit (and may soon be assigned the Coinbase, Titan & CFTC cases) ruled nearly 3 years ago that “swaps” are not subject to exclusive federal jurisdiction “and continue...
Judge‑shopping Exposed: Kalshi Case Omitted From CFTC Filing
"We'll see you in court" apparently doesn't apply to cases before SDNY judge Analisa Torres (who is presiding over Kalshi v. NY). The CFTC's civil cover sheet omits Kalshi v. NY as a "related case" (even Coinbase concedes they are related...
Nevada Should Leverage Presumption Against Preemption in 9th Circuit
Nevada should run, not walk, to the 9th Circuit and file the CA6 order as supplemental authority since it applies the “presumption against preemption”—describing the relevant field as “sports betting, not futures trading.” States win every case where the presumption...
Sixth Circuit Upholds State Power Over Sports Betting
Game, set and match for Ohio? The Sixth Circuit stated the presumption against preemption applies because this is a gambling case. The States have won every case where it applies (e.g., MA, MD, NV & OH). Reason: No "clear and manifest" statement...
Amicus Filing Deadline Today; Supreme Court Argument May 4
Today is the amicus filing deadline in the Massachusetts Supreme Court appeal. Oral argument is on May 4th.
Judge Torres' Decision Could Trigger Nationwide Disgorgement
USA v. New York Likely will be assigned to Judge Analisa Torres, who suddenly becomes the most important judge in the US hearing a PM case. If she denies Kalshi’s PI motion, the New York AG will be free to pursue nationwide...
Tennessee Seeks Joint Hearing to Prevent Inconsistent Preemption Rulings
Tennessee asks Sixth Circuit to hear the two prediction market appeals (OH & TN) before the same merits panel on the same day to decrease risk of inconsistent results, especially since they involve the same federal preemption question on which...
Winklevoss Twins Sued for Alleged False Prediction Market Claims
NEW: Winklevoss Twins sued over false prediction market claims following New York AG's enforcement action vs. Gemini Titan. Lawsuit alleges the Winklevoss' "willfully or recklessly" caused Gemini to engage in illegal gambling and to "make false and misleading statements."...
High 5 Games Moves Baltimore Lawsuit to Federal Court
Update: High 5 Games has removed Baltimore's civil enforcement action vs. sweepstakes casinos to federal court, says its sweepstakes games are "a promotion only, in which prizes were awarded in accordance with Maryland law and with free alternative method of...
Polymarket Moves Wisconsin Enforcement Action to Federal Court
Polymarket has removed the State of Wisconsin's civil enforcement action to federal court (WD Wisc.), with Kalshi, Robinhood, Coinbase and Crypto expected to do the same. However, the bar they have on a motion to remand is incredibly high--no PM...
Wisconsin Sues Major Prediction Markets over Illegal Sports Betting
NEW: The Wisconsin Department of Justice has sued prediction market platforms Kalshi, Robinhood, Coinbase, Polymarket and https://t.co/jeBmEO492C in state court over alleged illegal sports betting, seeks preliminary and permanent injunctive relief to halt sports-event contracts. https://t.co/MxLvGJoq4c
Judge Converts TRO to Preliminary Injunction, Vacates May Hearing
NEW: The Arizona federal judge in the Kalshi/CFTC v. AZ prediction markets lawsuit will be converting the TRO granted to the CFTC into a preliminary injunction after the parties submit proposed language, vacates PI hearing scheduled for May 6th. https://t.co/Lc4JPo30wX