Listen to former SEC Chair and CFTC Chair Gary Gensler discuss yesterday’s 9th Circuit Kalshi vs. Assad Opinion which unanimously ruled against Kalshi and in favor of the State of Nevada.
At issue in the dispute is whether Congress while passing 2010’s Dodd-Frank financial reform laws after the 2008 financial crisis made the CFTC a nationwide sports betting regulator. Kalshi (and the current CFTC) contend that Congress made the CFTC a nationwide sports betting regulator and denied states their traditional police power to regulate gaming, including sports betting. The 9th Circuit, on a preliminary motions hearing, decided otherwise.
Gary agrees with the 9th Circuit that Congress did nothing of the sort. In June, he filed an Amicus in Kalshi vs. Schuler in the U.S. 6th Circuit Court of Appeals regarding the case between Kalshi, Ohio, and Tennessee saying that Congress had not preempted the application of state gaming laws.
The 9th Circuit opinion in Nevada further tees things up for the Supreme Court to possibly weigh in on the matter. Earlier this year, in a split decision out of New Jersey, 3th Circuit Kalshiex vs. Flaherty Opinion, that court sided the other way.
You also can listen to Gary & Simon discuss Prediction Markets in ‘Episode Five: Prediction Markets’