2:25-cv-575-APG-BNW MOTION HEARING - ROUGH DRAFT - DO NOT CITE!!!
9 sense, anything could be a swap. If the coin flip of the Superbowl, hundreds of people bet money in Las Vegas at a casino on the coin flip, by statutory definition, that's a swap. MR. HAVEMANN: I don't want to fight with Your Honor's premise. I mean, Kalshi has, I guess, taken a conservative view of what qualifies as a swap. It does not offer bets on things like the coin flip and the like for the reason that it is concerned about a suggestion that would not have -- THE COURT: Okay. So pause here -- pause here for a second. So Kalshi decides it's not going to bet -- take wagers or take contracts -- I'll use the terminology take contracts on the flip of the coin at the Superbowl because it's not a swap. If it does, then the Gaming Control Board could, in a sense, regulate you because it's no longer -- it's not a swap, so it doesn't fall under the statute? MR. HAVEMANN: No, Your Honor, that's not our position. Our position is it's up to the CFTC to decide whether or not, you know, any contract has been placed online in a way that violates the statute, and the CFTC has all sorts of statutory mechanisms and regulatory mechanisms for correcting any problems. And that is clear from the statutory text, exclusive jurisdiction over these contracts -- THE COURT: Over swaps?
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UNITED STATES DISTRICT COURT Judy K. Moore, RMR, CRR
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