Dodd and Gensler Urge Supreme Court Prediction Market Review

All right, this happened late last week, but our friends at InGame.com wrote this article about Christopher Dodd from the Dodd-Frank Act and the former CFTC chair, Gary Gensler, both wrote briefs to the Supreme Court to take up the prediction market case. Christopher Dodd, that was written by InGame.com, his name's on the act, said the amendment in regulation left no room for interpretation for the Dodd-Frank Act when it came to whether or not it was supposed to be dealing with sports he said quote congress did not set out to authorize nationwide sports betting through derivative markets or displace decades of state and tribal primacy over gaming regulation the former CFTC Gary Gensler also submitted a brief concurring with Christopher Dodd saying, quote, Congress did not transfer jurisdiction over sports betting from the states to the CFTC when Congress amended the CEA through Dodd-Frank. It was addressing the causes of the recent financial crisis, not undoing federal policy against sports betting and displacing traditional state and tribal regulation. Congress did not include sports contracts within the statutory definition of a swap this is big okay both briefs sent to the Supreme Court said that this is in support of New Jersey's petition to have the Supreme Court hear its case against Kalshi after the third third circuit which went against the sixth and the ninth remember which ruled in favor of the states this court case ruled in favor of Kalshi the other three briefs were filed by the NFL the tribes and the American Gaming Association this is getting good okay this is getting interesting this is getting you feel like it's starting to come to a head when there's this many people who are involved who are willing to go out publicly and state this is not what we intended okay this when we put this into place the loophole that you guys have found we don't agree that the commodities and Exchange Act, the CEA, we don't agree that the interpretation being used by prediction markets to create sports gambling for companies like Novig and Polymarket and Kalshi and everybody else, DraftKings and FanDuel and Fanatics, everybody else who's operating these prediction markets. We don't believe this is legal. And again, I'm just going to say this because I've been saying this forever. I really do believe when this goes to the Supreme Court, that the Supreme Court is going to side on the side of Dodd-Frank, of Christopher Dodd, of former CFTC chairs and not the side not the side of the administration, I, I don't believe that's going to happen. In particular, it depends upon what happens in November, but if the House and Senate both flip, I think the Supreme Court is going to feel emboldened to do what I think they would do with a controversial ruling if the Senate the House are both run by Democrats, I don't think it will be nearly as controversial, but you're going to go up against the administration. You're going to go straight at Trump Jr. And you're going to go straight at Michael Seelig and say, Hey, what you guys are doing was never intended. And so we're handing this back to the States. If you want to operate a sports gambling business, which I do think ultimately Kalshi, Polymarket and Novig, I do think they all want to operate in the prediction market space with sports in certain states? I've said this before. I do not believe that Polymarket or Kalshi, I don't believe they're ever going to be gone. I don't think Novig is going to all of a sudden close up shop and be like, okay, just because the Supreme Court says you can't do a 50-state solution. They'll say, okay, we have to go and it will be very expensive, but they will do it. They will go apply for state licenses in particular, because the number of licenses available right now in different States is starting to really grow. You can go to Arizona right now. I could get a license in Arizona right now that they're looking for people to take licenses. So you can go into these states. You can't go to Florida. You can't go to New Hampshire. Okay. That is a single state, one state. They're not giving out any other licenses to one state. DraftKings in New Hampshire, Hard Rock in Florida, can't go to California, can't go to Texas, okay so I get it for a company like Calshi who have built their customer base in Florida, Texas and California, that's a really bad thing, but for other companies like Polymarket and Novig which have business in other states and haven't decided to go and market into those states and saying sports gambling is legal in California and Texas, come over here with Calshi, like the marketing did for Calshi I think that's where we see a lot of things going on and and like I I think there is so much um I think there is so much going on right now that people are, it's very much like what team are you on and I don't think that's a good way of approaching it, I think that's a problem actually We'll be right back.