Case 1:25-cv-08846-AT Document 60-1 Filed 12/03/25 Page 26 of 31
jurisdiction over its sports bets as “swaps” or transactions based on “excluded commodities.” Pl. Mot. for Prelim. Inj. at 4–5, 11 (ECF No. 16). As discussed above, this argument fails. Thus, Kalshi offers class III gaming (sports betting) in violation of IGRA—Kalshi has not obtained a license to offer its sports betting pursuant to tribal ordinance or resolution; nor has Kalshi been authorized to conduct its sports betting pursuant to any tribal-state compact. See 25 U.S.C. § 2710(d)(1) (class III gaming on Indian lands is only lawful if it is: (1) authorized by tribal ordinance or resolution; (2) located in a state that permits such gaming; and (3) conducted in accordance with a tribal-state gaming compact). Across the board, Kalshi does not geographically restrict its sports-event contracts and, therefore, offers such sports betting on Indian lands in violation of IGRA. Kalshi has also recently argued that UIGEA’s definition of “bet or wager” excludes transactions on DCMs, and that this exclusion should be read into IGRA to avoid a conflict between the two statutes. See Appellant Br. at 55, Martin , No. 25-1892. While UIGEA may provide insight as to what the term “sports betting” generally means, the exceptions to such definition from UIGEA should not be read into IGRA. As Kalshi points out, UIGEA exempts trading on DCMs when “conducted … under the [CEA].” See 31 U.S.C. § 5362(1)(E)(ii). However, that exclusion not only requires such trading to be lawful—which, as established, Kalshi’s is not—but is also specific only to 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.” 15 See 25 C.F.R. § 502.4(c).
15 While gaming under IGRA can involve bets or wagers as the words are commonly used, see 25 C.F.R. § 502.4(c), there is no indication, let alone clear intent, that Congress meant for IGRA to be limited to the technical definition—including all the exceptions—provided in an entirely separate statute. Furthermore, “UIGEA does not make gambling legal or illegal directly,” Iipay , 898 F.3d at 965, but rather ensures that the entire process of placing and accepting wagers is
26
Made with FlippingBook - Online catalogs