Daniel Wallach

#Sportsbetting & gaming lawyer. Co-Founder @UNHLaw sports wagering. Teach @MiamiLawSchool. Contributor @Forbes. Co-Founder @Condetrimental #sportslaw podcast.

[Daniel Wallach @WALLACHLEGAL]

Major-Questions Doctrine Could Shift Focus Back To Sports Gambling In Prediction Market Cases

My latest for Forbes.
https://t.co/HUqXPVE9PE

[Daniel Wallach @WALLACHLEGAL]

"The judge appeared sympathetic to Minnesota’s argument that Kalshi, Polymarket and other prediction markets have far exceeded what Congress initially intended when creating the Commodity Futures Trading Commission’s framework in 1974."

Via @CourthouseNews
https://t.co/JlNpCrTH56

[Daniel Wallach @WALLACHLEGAL]

Could Minnesota Prediction Market Ban Only Apply To Some Contracts?

via @Dan_O_Boyle
https://t.co/IloqT8kgTu

[David Payne Purdum @DavidPurdum]

The Michigan Gaming Control Board is formally withdrawing its membership with the National Council on Problem Gambling, citing the organization's recent partnership with prediction market Kalshi.

[Daniel Wallach @WALLACHLEGAL]

Justice Alito splits the difference and gives New Jersey a 30-day extension of time (rather than 60 days) to file its petition for writ of certiorari seeking SCOTUS review of the Third Circuit prediction markets ruling. The new deadline is August 4th. https://t.co/bMmnuiRDPn

[Daniel Wallach @WALLACHLEGAL]

Judge Menendez is skeptical that individual player statistical performance can be classified as a "swap":

"I'm fairly persuaded that it's an uphill battle to convince me that somebody's individual rebound count has financial, economic, or commercial consequences."

[Daniel Wallach @WALLACHLEGAL]

“That gap between the company’s public estimates and its actual spending, along with Lara’s criticism of IP-based blocking when describing offshore platforms, is expected to factor into whether Woodbury finds Kalshi’s compliance efforts were adequate.” https://t.co/0BSBmsKrN4

[Daniel Wallach @WALLACHLEGAL]

The Coalition for Fair Markets--a trade association comprised of CFTC-registered exchanges--has moved for leave to intervene as a party-plaintiff in the CFTC's lawsuit against the State of Illinois.

[Daniel Wallach @WALLACHLEGAL]

Per SCOTUS, the "relevant field" for field preemption purposes is "the target at which the state law aims." See Oneok, Inc. v. Learjet, Inc., 575 U.S. 373 (2015). That would be gambling activities, not the broader "trading on DCMs." https://t.co/oKk43Wjf8D

[Daniel Wallach @WALLACHLEGAL]

The same question to Minnesota:

"What is the relevant field for preemption purposes?

Minnesota:

"Gambling activities."

[Daniel Wallach @WALLACHLEGAL]

Judge Mendendez asks the key question:

"What is the relevant field for preemption purposes?

Kalshi: "Trading on DCMs."

S-P-O-R-T-S

G-A-M-B-L-I-N-G
https://t.co/HUqXPVE9PE

[Daniel Wallach @WALLACHLEGAL]

CFTC's counsel admits to Judge Mendendez that the agency hasn't taken down one contract in the last 18 months.

[Daniel Wallach @WALLACHLEGAL]

The moment that Kalshi may have lost the motion:

Judge Menendez: "It's not different to the 20 year-old kid sitting in his basement who has emptied his savings to bet on a World Cup game."

Referring to the house vs. P2P false distinction.

[Daniel Wallach @WALLACHLEGAL]

Judge Menendez to Kalshi's counsel:

"Have you had any contracts taken down by the CFTC within the last 18 months?"

Kalshi's counsel's answer:

"No. But that doesn't mean that the CFTC isn't doing its job. It means that we are doing ours."

[Howard Stutz @howardstutz]

Kalshi will now have to respond to the Carson City District Court on why it didn’t geofence Nevada as ordered by the Gaming Control Board.
Via @WALLACHLEGAL

[Daniel Wallach @WALLACHLEGAL]

A first — Kalshi’s general counsel Rick Heaslip is called up by Judge Menendez to testify about event contracts generally.

[Daniel Wallach @WALLACHLEGAL]

Judge Menendez notes that today’s hearing in Kalshi v. CFTC is being held in the courtroom of Judge David Doty, who passed away last week. Judge Doty presided over some of the most important #sportslaw cases of our time.