2:25-cv-575-APG-BNW MOTION HEARING - ROUGH DRAFT - DO NOT CITE!!!
48 1936, amended significantly in 1974. When you look at the landscape of what was happening in America in those two time periods, Nevada was the only State where gaming was legal, the only State where you could place sports bets, so it's hard to see how sports betting as a commodity was in the contemplation of Congress at the time it passed these statutes. Since 2018, obviously, and the U.S. Supreme Court case that allowed States to legalize sports betting, 39 jurisdictions -- or sorry -- 41 jurisdictions, 39 States and then Washington D.C. and Puerto Rico, have legalized sports betting. That means, though, that in 11 other State jurisdictions sports betting is not legal. And so to say that states can't come in and regulate gaming means that Kalshi can go to California, Alaska, places where sports betting is not legal, and allow de facto sports bets. THE COURT: How do I deal with, though, the language in 7 U.S.C. 7a-2(c)(5)(C)(v) that says -- that's the gaming reference -- that the CFTC can review contracts and may or may not determine that contracts involving gaming are valid or not? That seems to be a direct Congressional delegation of the regulation of gaming under this kind of market to the CFTC. How do you get around that?
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MS. WHELAN: Well, that's a permissive delegation. THE COURT: Yeah. Well, it's a delegation that says
they may determine whether it's good or not.
UNITED STATES DISTRICT COURT Judy K. Moore, RMR, CRR
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