Case: 2:25-cv-01165-SDM-CMV Doc #: 69 Filed: 03/09/26 Page: 10 of 21 PAGEID #: 903
game exceed 41? ). ( See ECF No. 31-2, PAGEID # 446.) Kalshi also construes
“associated with a potential financial, economic, or commercial consequence” to
encompass all of sports business: ticket sales, hotel rooms, athlete sponsorships,
coaching staff salaries, broadcast rights, licensing and merchandising, and tourism.
(Reply, PAGEID # 639.)
Ohio urges a more limited construction of those words, hemmed in by the
statute’s context. The State looks to subsections (i) and (iii) of the “swap” definition
to identify guideposts for interpreting subsection (ii). In full, subsections (i)–(iii) 3
define “swap” to include any agreement, contract, or transaction
(i) that is a put, call, cap, floor, collar, or similar option of any kind that is for the purchase or sale, or based on the value, of 1 or more interest or other rates, currencies, commodities, securities, instruments of indebtedness, indices, quantitative measures, or other financial or economic interests or property of any kind;
(ii)
that provides for any purchase, sale, payment, or delivery (other than a dividend on an equity security) that is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence; [or]
(iii) that provides on an executory basis for the exchange, on a fixed or contingent basis, of 1 or more payments based on the value or level of 1 or more interest or other rates, currencies, commodities, securities, instruments of indebtedness, indices, quantitative measures, or other financial or economic interests or property of any kind, or any interest therein or based on the value thereof, and that transfers, as between the parties to the transaction, in 3 “Swap” also includes any agreement, contract, or transaction “that is an agreement, contract, or transaction that is, or in the future becomes, commonly known to the trade as a swap;” that is a security-based swap agreement “of which a material term is based on the price, yield, value, or volatility of any security or any group or index of securities, or any interest therein;” and “that is any combination or permutation of, or option on, any agreement, contract, or transaction described in any of clauses (i) through (v).” 7 U.S.C. §§ 1a(47)(iv)–(vi).
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