6–9.) The court begins its analysis, as it must, with the statute’s text. United States v. Bedford , 914 F.3d 422, 427 (6th Cir. 2019) (citations omitted). a) Events The CEA “define[s] ‘swap’ broadly.” Phillips , 155 F.4th at 113. A swap is “dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency.” 7 U.S.C. § 1a(47)(A). The parties disagree about whether an “event” necessarily takes place over time—for example, the length of a football game—or whether it can be something that happens in an instant, as a result of things that have happened—for example, a team winning a football game. The defendants argue that, with respect to sports, the occurrence of an event relates to whether a game takes place at all, whereas Kalshi’s event contracts—regarding who wins, or how many points a player scores—concern the outcome of an event, not the event’s occurrence or nonoccurrence. As the defendants put it, “Kalshi’s sports-event contracts cannot be ‘swaps’ because they are not dependent on the sports event taking place ( i.e. , its occurrence)—it is dependent on a result of the sports event ( i.e. , its outcome).” (Doc. No. 34 at 22.) Based on this interpretation, Kalshi could offer sports event contracts concerning whether a game is played but not who will win or how many points a player will score. The defendants cite dictionaries that define “occurrence” as “something that occurs,” the “action or instance of occurring,” and “[s]omething that happens or takes place,” and dictionaries that define “event” as “usually impl[ying] an occurrence of some importance and frequently one having antecedent cause,” and “significant occurrence or happening.” (Doc. No. 34 at 22 (citations omitted).) Kalshi responds with its own dictionary definitions indicating that “event” means “outcome” and “[s]omething that happens.” (Doc. No. 41 at 7 (citations omitted).) But even accepting the defendants’ proposed definitions, if, for example, the Titans won a Super Bowl, that would be a significant occurrence, something that happened or took place, and an occurrence of
14
Case 3:26-cv-00034 Document 48 Filed 02/19/26 Page 14 of 25 PageID #: 882
Made with FlippingBook - Online catalogs