Case 3:25-cv-02016-VDO Document 56-1 Filed 01/16/26 Page 18 of 29
federal district court has found that the [CEA] does not preempt the application of State gambling, wagering, and gaming laws to sports-related event contracts listed and traded on a CFTC-registered trading venue,” and it advised DCMs to ensure customers “understand the possible effects should State regulator actions … result in termination of sports-related event contracts.” Id. at 2 & n.3. Kalshi’s arguments thus stand in sharp contrast to the CFTC’s own unwillingness to regulate sports betting. The Court should reject Kalshi’s efforts to expand the CFTC’s jurisdiction to a vast new area of regulation. 3. The Indian Canons of Construction implore this Court to resolve any ambiguity in favor of tribes. Even if there were ambiguity as to whether Congress intended to repeal IGRA when it amended the CEA in 2010 (there is not), the Indian Canons of Construction require courts to resolve statutory ambiguities in favor of tribes. Bryan v. Itasca Cnty. , 426 U.S. 373, 392 (1976); New York v. Mountain Tobacco Co. , 942 F.3d 536, 548 (2d Cir. 2019) (“[S]tatutes are to be construed liberally in favor of the Indians, with ambiguous provisions interpreted to their benefit.” (quoting Montana v. Blackfeet Tribe of Indians , 471 U.S. 759, 766 (1985))). Federal courts have consistently applied these canons over a half-century to ensure that later-enacted statutes of general applicability cannot repeal earlier-enacted legislation specifically designed to advance the United States’ special relationship with tribes, without a clear statement from Congress. See, e.g. , Morton v. Mancari , 417 U.S. 535, 550 (1974); Swinomish Indian Tribal Cmty. v. BNSF Ry. Co. , 951 F.3d 1142, 1159–60 (9th Cir. 2020); Shoshone-Bannock Tribes of Fort Hall Rsrv. v. DOI , 153 F.4th 748, 765 (9th Cir. 2025). This Court should therefore reject Kalshi’s preemption argument requiring an implied repeal of IGRA. E. IGRA Regulates Online Gaming on Tribes’ Indian Lands—Including Kalshi’s Sports-Betting Contracts.
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