Case 2:25-cv-00978-APG-BNW Document 105 Filed 10/14/25 Page 2 of 27
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gaming laws and, in any event, Crypto’s sports wagers are not “swaps” and thus do not fall within the CFTC’s exclusive jurisdiction. Additionally, the defendants argue that Crypto cannot meet the other factors to support preliminary injunctive relief. The defendants contend that judgment on the pleadings is premature because fact issues remain, and they argue that the motion to strike should be denied, except for one affirmative defense that they concede is now moot. Several Indian tribes and Indian gaming associations move for leave to file an amicus brief. 1 Crypto does not oppose granting leave for the amicus brief to be filed and responded to the amicus brief on the merits. I deny the motion for judgment on the pleadings because, based on the pleadings, Crypto’s event contracts are not “swaps” falling within the CFTC’s exclusive jurisdiction. I deny the motion for preliminary injunction because Crypto has not met its burden to show that it is likely to succeed in demonstrating that its event contracts based on the outcome of live events are swaps that fall within the CFTC’s exclusive jurisdiction. I grant in part the motion to strike, with leave to amend. Finally, I grant the amici leave to file the amicus brief. I. BACKGROUND The CFTC regulates financial derivative markets. “A derivative is a financial instrument or contract whose price is directly dependent upon (i.e.[,] derived from) the value of one or more underlying assets—for example, commodities (like corn and wheat), securities, or debt instruments.” KalshiEX LLC v. Commodity Futures Trading Comm’n , No. 23-3257 (JMC), 2024
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1 The amici are the Indian Gaming Association, California Nations Indian Gaming Association, Arizona Indian Gaming Association, Washington Indian Gaming Association, Oklahoma Indian Gaming Association, National Congress of American Indians, the Native American Finance Officers Association, Tribal Alliance of Sovereign Indian Nations, San Manuel Gaming and Hospitality Authority, United South and Eastern Tribes Sovereignty Protection Fund, and 24 federally recognized Indian Tribes. ECF No. 74 at 1-2.
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