Case 1:25-cv-12578-RGS Document 41-1 Filed 10/16/25 Page 19 of 24
on Indian lands” (quoting S. Rep. No.100-446, at 6 (1988))); Gaming Corp. of Am. v. Dorsey & Whitney , 88 F.3d 536, 544 (8th Cir. 1996). IGRA’s implementing regulations define “Class III Gaming” to expressly include “sports betting.” 16 25 C.F.R. § 502.4(c). While the term “sports betting” is not defined therein, it is generally understood to mean:
[T]he staking or risking by any person of something of value upon the outcome of … a sporting event … upon an agreement or understanding that the person or another person will receive something of value in the event of a certain outcome.
31 U.S.C. § 5362(1)(A) (defining “bet or wager” under the Unlawful Internet Gambling Enforcement Act (“UIGEA”)). 17 This is precisely what Robinhood is offering: contracts that stake or risk something of value upon the outcome of a sporting event based on the understanding that the person will receive something of value based on that outcome. Robinhood does not deny this. Instead, Robinhood ignores the fact that its sports event contracts are sports bets by another name, and maintains that the CFTC has exclusive jurisdiction over its sports event contracts as “swaps” or “excluded commodities” listed for trade on Kalshi’s 16 See Letter from Kevin Washburn, General Counsel, NIGC, to Joseph M. Speck, Nic-A-Bob Prods., re: WIN Sports Betting Game (Mar. 13, 2001), available at ***********.nigc.gov/wp- content/uploads/2025/03/WIN-Sports-Betting-Game-Class-III.pdf (“Because sports betting does not fit into any of the specifically defined categories of Class II gaming set forth above, it is a Class III form of gaming.”). 17 Robinhood may argue, as it recently did, that the UIGEA’s definition of “bet or wager” expressly excludes transactions on DCMs. See Plaintiff Robinhood’s [Proposed] Response to Brief of Amici Curiae, Robinhood Derivatives, LLC v. Dreitzer , No. 2:25-cv-01541, ECF No. 49 at *4–5 (Oct. 14, 2025). But while that may generally be true, see 31 U.S.C. § 5362(1)(E), that exclusion is specific to the applicability of the UIGEA and does not change the core understanding of what “sports betting” means. Moreover, IGRA contains no similar exclusion for Class III gaming, which expressly includes “sports betting.” 25 C.F.R. § 502.4. 19
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