NY Adopts Massachusetts’ State‑court Tactic to Preempt Federal Suits
“New York’s strategy mirrors tactics initially deployed by Massachusetts. Rather than awaiting federal court lawsuits, both jurisdictions filed in state court systems to position platforms defensively.” https://t.co/X66uevGrVN
NY Courts Can Force Nationwide Restitution From Crypto Firms
"Companies based in New York can be required to pay restitution of illegal profits to its customers across the country, not just in this state, if found to be in violation by a court. Both Coinbase and Gemini have New...
Advocacy Group Sues Kalshi, Calling Market a Betting Pretext
The Public Health Advocacy Institute (PHAI) has filed a class action lawsuit against Kalshi in Massachusetts Superior Court, alleging that the “prediction market” structure "is a pretext designed to disguise" unlicensed sports betting as federally-regulated "financial trading." https://t.co/AZ10RQA0ZN
Gemini Follows Coinbase, Challenges NY AG Lawsuit in Federal Court
Gemini has joined Coinbase in removing the New York AG's civil enforcement action to federal court, raising the same arguments (substantial Q of fed law, complete preemption & federal-officer status) that federal courts in MA & NV have rejected. Next...
Coinbase Shifts NY AG Case to Federal Court Amid Rejections
Coinbase has removed the New York AG's civil enforcement action from state court to federal court, raising the same arguments (substantial Q of fed law, complete preemption & federal-officer status) that federal courts in MA & NV have rejected. Next...
NY AG Holds Off Kalshi Lawsuit Pending Motion
If you're looking for the reason why the @NewYorkStateAG did not sue Kalshi yesterday (alongside Coinbase and Gemini), go no further than #4 below--the NYAG's agreement to refrain from pursuing enforcement action vs. Kalshi pending disposition of Kalshi's PI motion...
NY Attorney General Sues Prediction Market over Wire Act Violations
The New York AG's Office becomes the first law enforcement agency in the country to accuse a prediction market platform of violating the federal Wire Act by offering sports-event contracts across state lines. https://t.co/xCd3WbLHM6
AG James Seeks Triple Fines, Profit Forfeiture From Coinbase, Gemini
"In her lawsuits filed today, AG James is asking the court to require Coinbase & Gemini to forfeit illegal profits, distribute restitution to consumers who were harmed and pay fines equal to 3X the profits the companies made through their...
NYAG Lawsuits Pile up with Problem Gambling Exhibits
There are already 81 docket entries in the NYAG v. Gemini lawsuit and 72 docket entries in the NYAG v. Coinbase lawsuit. Mostly exhibits to the State's TRO/PI motions. An article from @GamblingHarmOrg is one of the exhibits--many of...
NY Attorney General's Office Made 22,000 Coinbase Trades
The New York AG's Office placed 22,000 bets on Coinbase over a two-and-a-half-month period. https://t.co/zRrJJCBqmG
Kalshi Faces Likely NY Lawsuit After Coinbase, Gemini
“Legal expert Daniel Wallach noted that Kalshi is likely next after the lawsuit against Coinbase and Gemini. He explained that New York hasn’t sued the prediction markets platform because of the pending motion for a preliminary injunction.” https://t.co/F4FDlpNRvI
NY Regulators Could Force Nationwide Disgorgement, Personal Liability
“Wallach has also emphasized the scale of New York’s enforcement powers, pointing to the potential for nationwide disgorgement and personal liability for executives.” via @vcrosspoker @DeFiRate https://t.co/0KYB484nUY
NY Law Lets AG Sue Repeat Fraudsters for Relief
New York Executive Law § 63(12) empowers the OAG to bring a special proceeding for injunctive relief, restitution, and damages whenever a person or business engages in “repeated or persistent fraud or illegality.” https://t.co/eoMaAfPv5g
NY Attorney General Pursues $2.2 B Claim Against Coinbase
The New York Attorney General's Office is seeking a minimum of $2.2 billion in damages against Coinbase. https://t.co/J7Ol4Uyvzk
NY Attorney General Probes Gemini Since Super Bowl Bet
The New York AG Office's investigation of Gemini dates back to December with the first sports bet made on the Super Bowl. https://t.co/iyXAyw1TSk
NY Attorney General Sues Coinbase, Gemini Over Illegal Gambling
News: The New York Attorney General has sued Coinbase and Gemini in Manhattan Supreme Court under NY Executive Law § 63(12) for operating illegal gambling in violation of state law, seeks disgorgement, restitution, injunction and civil penalties. https://t.co/XdJg4DfKz2
New Jersey Declines Rehearing, Eyes SCOTUS Petition Deadline
New Jersey will not be seeking rehearing of the Third Circuit decision affirming the preliminary injunction issued in favor of Kalshi. Deadline was yesterday. NJ has until July 6th to file a SCOTUS cert petition, although deadline can be extended...
Exploring Prediction Markets' Legal Landscape at AML Summit
Looking forward to presenting later today on the prediction markets legal landscape as part of the American Gaming Association’s Anti-Money Laundering (AML) Summit. https://t.co/DDjA2BXkE0
Arizona Requests June Hearing, Limited Discovery, Clarifies TRO Limits
Arizona seeks to continue hearing date on CFTC's motion for preliminary injunction from May 6 to June 3, intends to propound "limited, target written discovery on the CFTC", and seeks "clarification" on whether TRO prohibits AZ from "investigating" and issuing...
Judge Probes Major‑questions Doctrine for Sports Betting Contracts
Judge Nelson asked the following Qs about whether the major-questions doctrine applies to sports-event contracts: 1) Is Dodd Frank a "long extant, but rarely used statute"? 2) Does sports gambling have "vast economic and political significance"? His opinion in State v. Su:👇...
Agency Inaction Can't Override State Law, Roth Rules
Judge Roth's recognition that "agency inaction alone cannot preempt state law, especially not when that inaction constitutes a failure to 'adhere to its own rules & regulations'" worth revisiting in light of the CA9's focus on Rule 40.11(a)(1).🧵 https://t.co/PGlrk8xTm0
Judge Doubts Dodd‑Frank Gave CFTC Sole Sports‑bet Jurisdiction
"Boy, that's a pretty monumental change without a lot of discussion about it." - Judge Nelson expressing skepticism that the 2010 Dodd-Frank amendments granted the CFTC exclusive jurisdiction over sports-event contracts.
Four Federal Judges Challenge Rule 40.11 Ban on Gaming Contracts
Judge Nelson (CA9) is the 4th federal judge this year to assert that Rule 40.11(a)'s blanket ban on gaming contracts undermines Kalshi's case, joining Judge Morrison (OH), Judge Gordon (NV) & Judge Roth (CA3). Old enough to remember when people...
Kalshi Pushes Lawsuit Transfer to SDNY Over Rule 40.11
Rule 40.11 will not go away. The latest: Kalshi is seeking to transfer the Georgia federal class action lawsuit filed against the company and its co-founders for violating Rule 40.11(a)(1) to the SDNY, says if transfer motion is denied, it will...
Congress Gave CFTC $100B Gambling Revenue It Can't Regulate
“We don’t regulate gambling, Judge Nelson.” - CFTC's attorney @vcrosspoker: "It’s hard to argue Congress silently transferred a $100 billion-plus state revenue base to a regulator that concedes it doesn’t have the specialty." Via @vcrosspoker https://t.co/4Ly73netJD
CFTC's Inaction May Undermine Kalshi Sports Betting Lawsuits
Rule 40.11 is a major problem. I wrote this nearly one year ago. "CFTC’s Failure To Enforce ‘Gaming’ Contract Ban Could Still Upend Kalshi Sports Betting Lawsuits" https://t.co/hFQ1ejhfoB
Nelson’s Questioning Pushes Nevada Vote on Kalshi Contracts
"Nelson’s 40.11 line of questioning, his 'sophistry”' line, and his pointed reminder that Kalshi told the DC Circuit these were gaming contracts lean toward a vote for Nevada." Via @vcrosspoker https://t.co/4Ly73netJD
Judge Rejects Claim CFTC Sole Authority over Sports Contracts
PM Lawyer: “Whether 40.11 bans sports event contracts is a matter for the CFTC to address, not a matter for Nevada to address.” Judge Nelson: “That can’t be a serious argument. It’s self-certification. You can put up anything you want.” Via @Dan_O_Boyle https://t.co/HrzTVlnaJ9
Nelson Argues Rule 40.11 Clearly Bars Self‑Certification
“One topic more than any other seemed to define Nelson’s view of the case: the wording of the CFTC’s Rule 40.11. “No one has come up with a coherent, English reason why that shouldn’t be the rule. It says you...
Trump-Appointed Judge Calls Argument Sophistry to Nth Degree
“This is sophistry to the nth degree,” said U.S. Circuit Judge Ryan Nelson, a Donald Trump appointee. “I don’t understand how you say these are different.” https://t.co/9u4WbwH10Y
Appeals Court Warns of Threat to Prediction Markets
Appeals Judges Signal Potential Trouble for Prediction Markets in Key Case "It's sophistry to the nth degree." - CA9 Judge Ryan Nelson That pretty much sums it up. via @ButlerBets https://t.co/X7yeYmEMAp
Oral Arguments Usually Predict Appellate Decisions, Though Not Certain
Oral arguments are often a reliable indicator (but no guarantee) of where the appellate panel will ultimately come out. All of us who watched the CA3 oral argument had a pretty good idea how it would be decided. No surprises...
Trump Jr.’s Advisory Role Sparks 22x Valuation Surge
"To put numbers on it: when Trump Jr. joined Kalshi as a paid adviser in January 2025, Kalshi was valued at roughly $500 million. By December 2025, it was valued at $11 billion — a 22x increase in under a...
Sports Betting Handle Surpasses $165B, Triggers Major‑Questions Review
National sports betting handle via state regulation exceeded $165 billion in 2025, well north of the $50 billion baseline for 'significance' suggested by Judge Nelson for application of the 'major-questions' doctrine. Via @SBJ https://t.co/KpmmUeyJQ4)
Court Rulings Swing Wildly, Echoing 1980s Tyson Fight
Crazy pendulum swing going from CA3 and Arizona rulings within last two weeks to double drubbing in CA9 and Selig testimony. Feels reminiscent of a mid-1980's Mike Tyson fight.
Judge Flags Kalshi's Claim that Sports Betting Is Nationwide
Judge Bade: "Kalshi advertises 'sports betting is legal in all 50 states.' Yet another instance of Kalshi's own words being used against it.
Cowboys' Value Defies Wins: Money Beats Championships
Judge Lee shading the Dallas Cowboys. Says team is the most valuable franchise in sports even though they haven't won anything in years. Goes to whether winning or losing a particular game has financial consequences.
Kalshi's 2024 Legal Push Thwarted by Gaming Ban
Believable. And predictable. Kalshi's 2024 admissions from the DC case and Rule 40.11's blanket ban on 'gaming' contracts have always been the double-barred achilles heel to Kalshi's legal argument. 1) Rule 40.11 bars "gaming" contracts 2) Kalshi says sports contracts = gaming
Judge Nelson Leverages Kalshi’s Own Words Against It
Judge Nelson is using Kalshi's own words against it from the DC case (i.e., that Congress didn't want sports-event contracts--mirroring Judge Abelson's comments from the MD oral argument. And we know how that one turned out. Nelson is firmly in...
Judge Nelson Challenges CA3 Majority on Rule 40.11(a)(1)
Rule 40.11(a)(1) taking center stage at the oral argument, as Judge Nelson indicates that he disagrees with the CA3 majority’s analysis of that point and has PM counsel on ropes.
9th Circuit Demands Field Definition Before Preemption Analysis
In ruling for Kalshi, the CA3 held that the "relevant field" for preemption was "trading on DCMs" after finding that sports-event contracts were swaps. But the 9th Circuit (next up) requires that the relevant field be defined FIRST before analyzing...
Lawsuit Claims Stake and Coinbase Enabled NY Underage Gambling
New lawsuit alleges that sweepstakes casino giant Stake and its co-founders facilitated underage gambling in NY and that Coinbase’s fiat-to-crypto services "served as a primary and foreseeable onramp for New York users—including minors—to fund Stake’s unlawful gambling." https://t.co/3P2VQTN6Gn
First Circuit Schedules Briefing in Robinhood‑Massachusetts Prediction Market Appeal
The First Circuit has issued a briefing notice in the Robinhood vs. Massachusetts prediction markets appeal. (There are PM appeals in 5 different circuits so far--CA1, CA3, CA4, CA6 & CA9) with more on the way (CA2, CA7 & CA10)....
Kalshi Decries Ohio's $5M Fine, Seeks Injunction
Kalshi calls Ohio's proposed $5M fine an “extraordinary & regrettable step” in new CA6 filing, says "rush to impose an unprecedented fine" with motion pending causes irreparable harm and forces Kalshi into “Hobson’s choice;” urges granting of motion for injunction...
Gensler: Preempting NJ Gaming Commission Politically Impossible
“Nobody was intending to preempt the New Jersey state gaming commission. It was politically not discussed, and if it had been, it would have been dead in Congress. Senators wouldn’t have voted for it.” - Gary Gensler, former Chair of both...
Montana Finally Drops Cease-and-Desist Against Kalshi
Montana is the last remaining state that issued a cease-and-desist letter to Kalshi (last year) that had not yet ended up in litigation vs. a PM. Until now.
DC Council Proposes Legal iGaming with 25% Tax, Bans Sweepstakes
A new bill introduced in the Washington, DC Council would legalize real-money online casino gaming, tax iGaming operators at 25%, and also ban online sweepstakes casinos. Via @SweepsyHQ https://t.co/eXaywE1Rt0
Judge Liburdi Raises Unmentioned Rule 40.11(a)(1)
Rule 40.11(a)(1) is raised by Judge Liburdi even though Arizona’s supplemental brief in response to the CFTC’s motion for TRO didn’t raise it.
NY AG Threatens Nationwide Disgorgement for Kalshi, Polymarket
New York State case could bring massive consequences for Kalshi and Polymarket—i.e., nationwide disgorgement and personal liability for company executives. @Capitol_Forum examines the @NewYorkStateAG’s broad enforcement powers under New York Executive Law 63(12). https://t.co/5bOs5BJHiL
CFTC Brief Skips Rule Banning Gaming Event Contracts
The CFTC's brief vs. Arizona omits any reference to Rule 40.11(a)(1)-- its own regulation (still in effect) which expressly bans event contracts relating to "gaming" or "activity which is illegal under state law." Unwise not to at least address it...