Gary Gensler, former CFTC Chairman, files two new amicus briefs opposing the CFTC’s & Kalshi’s mistaken arguments that sports bets are swaps under federal regulation. In these two cases, Wisconsin and New York take the other side. Indeed, 39 states have argued against the CFTC & Kalshi in numerous cases across the country.
Read John Lothian’s take on Gary’s amicus strategy vs. CFTC and Kalshi’s arguments: Gensler Files Amicus in Wisconsin Seventh Circuit Court of Appeals Case Taking Aim at CFTC Leadership in High-Stakes Prediction Market Legal Battle. (graphic above is from John Lothian News)
The case boils down to the question of what Congress did in 2010’s Dodd-Frank financial reform with regard to sports betting. Sports betting has been regulated by the states since our nation’s founding – yet the CFTC argues that Congress upended that entire regulatory structure as part of the post 2008 crisis financial reform. (Congress didn’t!)
These cases matter to Kalshi given sports betting represents over 80% of their revenue. The cases matter to states and tribal authorities as they seek to protect the public as well as tax revenues.
Read Gary Gensler’s 7th Circuit amicus filing and Gary Gensler's 2nd Circuit Amicus for his firsthand accounts on why the CFTC & Kalshi’s arguments are wrong.