An expansive, vaguely worded definition (“swap”) does not constitute “clear congressional authorization” for the CFTC's assertion of regulatory authority over sports gambling, especially in light of the Wire Act/PASPA and Congress' command that swaps can only be traded on DCMs.👇
“It’s a classic regulatory capture when you look at the timeline and how the CFTC has approached sports event contracts for 15 years, and it all changed on a dime,” said Daniel Wallach, an attorney and sports gambling expert.
via @lukitsbill@StarTribune https://t.co/fMrdCLKMTX
Kalshi is offering New Yorkers sports and election bets without a state gaming license. CFTC regulation doesn’t wipe out New York’s gambling laws. Every other sportsbook and casino has to play by those rules. This issue isn’t specific to NY; Kalshi is fighting lawsuits by numerous state AGs. Clearly there is grounds or each and every lawsuit would’ve been summarily dismissed. Calling enforcement a “shakedown” is an interesting take.