FEDERAL VS STATE REGULATION
Kalshi can use the extended status quo to its advantage. The longer it continues to trade, thereby attracting customers and money, the more difficult it becomes, from an equitable standpoint, to shut it down. The longer Kalshi is in the marketplace the more likely it is that it will keep going, show that it is a responsible sports betting company and that the competition will not be irreparably damaged if it’s activities are allowed to continue. In fact, an overly lengthy wait for a ruling may induce state legislators and Kalshi to come to points of compromise, particularly when and if other regulated sports betting entities begin to engage in similar behavior under the umbrella of their wagering licenses. Furthermore, drawn out litigation and uncertainty foster an environment where black market gambling can prosper, capitalizing on
the favorable, but non-final rulings to entice gamblers to offerings that are neither saddled by nor restrained by regulation. There will be a lot of background noise from supporters of both sides of the case, some twists and turns along the way, and many opportunities for gaming lawyers to make their way into Kalshi-adjacent projects. Kalshi itself will almost certainly emerge from the fray with some positive growth and success, and that is before considering any potential political influence. With so much on the line, a number of influential parties will advocate for their share at both the state and federal level. As such, there is always a chance that the next swerve in the litigation path stems from outside the courtroom.
DANIEL MCGINN Special Counsel, Jones Walker For information contact +1 850 214.5105 dmcginn@joneswalker.com
As the saying goes, this case will run and run.
Made with FlippingBook flipbook maker