Case 1:25-cv-08846-AT Document 60-1 Filed 12/03/25 Page 24 of 31
to lack of proper regulation is a major question. Under the Major Questions Doctrine, courts have “‘reason to hesitate before concluding that Congress’ meant to confer” agency authority in cases where the agency has asserted a “breadth” of authority over matters of “economic and political significance.” West Virginia v. EPA , 597 U.S. 697, 721 (2022). In such cases, considering “both separation of powers principles and a practical understanding of legislative intent,” there must be “clear congressional authorization.” Id. at 724. As the Court explained, “Congress [does not] typically use oblique or elliptical language to empower an agency to make a ‘radical or fundamental change’ to a statutory scheme.” Id. at 723 (quoting MCI Telecommunications Corp. v. Am. Telephone & Telegraph Co. , 512 U.S. 218, 229 (1994)). Here, the Major Questions Doctrine precludes interpreting the 2010 amendment to the definition of swap as upending both state laws regulating sports betting and a federal statute that relied on those state laws to carry out federal policy against sports betting but that went unnoticed for fifteen years. Rather, as the Nevada District Court aptly put it in Hendrick , “It is absurd to think that Congress intended for DCMs to turn into nationwide gambling venues on every topic under the sun to the exclusion of state regulation and with no comparable federal regulator without ever mentioning that was the goal when Congress added swaps to the CEA in 2010.” 2025 WL 3286282, at *9. C. Kalshi’s sports-event contracts constitute “Class III Gaming” under IGRA IGRA’s regulatory regime is comprehensive, and occupies the entire field of gaming on Indian lands. See Tamiami Partners, Ltd. v. Miccosukee Tribe of Indians , 63 F.3d 1030, 1033 (11th Cir. 1995) (IGRA was “intended to expressly preempt the field in the governance of gaming activities on Indian lands” (quoting S. Rep. No. 100-446, at 6 (1988))); Gaming Corp. , 88 F.3d at 544. IGRA—not the CEA—therefore preempts the field Kalshi has now occupied.
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