Regulatory Act (“IGRA”) and the Wire Act, and state gaming laws. Although it is the role of the CFTC to investigate such matters, the CFTC has yet to respond and has left the matter to the courts. It is important to underscore the CFTC’s ongoing failure to act in response to the sports-based event contracts and the gravity of Mr. Quintenz’s failure to commit to reviewing such contracts. Many find it troubling that, during his nomination hearing, Mr. Quintenz refused to assure the Committee that under his leadership the CFTC would enforce its own regulations. Even more troubling is the sentiment that Mr. Quintenz would follow his own interpretation of the Commodity Exchange Act (“CEA”). Further, when asked whether he would review events contracts to ensure that they comply with IGRA and principles of tribal sovereignty, he did not give a clear answer. Based on our understanding of Mr. Quintenz’s testimony, should the Committee move forward with his appointment to the CFTC, unregulated sports betting will continue, absent an explicit court mandate. Given the pace of the ongoing litigation, this could mean that it may take months to years before these harmful gaming practices and infringement upon principles of tribal sovereignty are checked. Not only did Mr. Quintenz fail to adequately answer the questions on sports-based event contracts by Committee members, but IGA is concerned that that he also provided lackluster answers when questioned about potential conflicts of interest stemming from his former position on Kalshi’s board. He did the same when asked about his ability to push back on pressures from other Kalshi board members and advisors, including the President’s son, Donald Trump Jr. While Mr. Quintenz did say that he was willing to take all avenues to comply with applicable ethics protocols, including screening methods, in response to Senator Booker’s concerns regarding Kalshi’s indirect connections to the President, he explained that he would only “pledge to have a conversation” about the relationship to Kalshi and his objectivity. This conflict of interest is concerning to tribal gaming operators and regulators, especially in light of the CFTC’s current inaction on matters involving unauthorized sports betting. The Committee will likely make a final decision on Mr. Quintenz’s nomination this week. It is vital that our members now contact their Senators and Committee members with their concerns on this matter and request that, as a pre-requisite to any further consideration for his appointment, Mr. Quintenz commit to the investigation of sports-based events contracts. For our members’ reference, we have attached a copy of AGA’s outreach letter to this Alert. Please contact Danielle Her Many Horses at dhermanyhorses@indiangaming.org with any questions or concerns with this Alert.
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