Massachusetts Sues Robinhood and Kalshi Over Betting

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00:00where we're starting to finally get some pushback here the state of massachusetts could be one of

00:06them a couple of companies cal sheet robin hood they're operating in the prediction market space

00:12and it seems like a very slow drip for these states to finally say hey look if we're not

00:17getting our piece of the pie from you guys you can't operate in our state yeah i think that's

00:23spot on craig with what's going on in terms of the slow drip and how things are slowly starting

00:29to take form this week massachusetts attorney general came out and sued both robin hood and cal sheet

00:36which are those companies offering these sports prediction markets in so many states which has

00:40is really starting to piss those states off it looks like this lawsuit seeks for you know damages

00:47you know compensation for lawyers fees to an undisclosed amount where it could be any amount

00:52of money a judge would decide and most importantly it also seeks to stop these companies from

00:57operating by seeking an injunctive relief that would prevent them from offering what their

01:02massachusetts is saying is unlicensed sports betting so this is a company that's valued at about two

01:07billion dollars now with the whole sports prediction business and just continues to expand uh interestingly

01:13enough their partner robin hood also came out right after this lawsuit was filed and filed a counter

01:18lawsuit in federal court this time which is important to note because a company like cal sheet a company

01:24like robin hood that wants to be federally regulated as an exchange where it doesn't have to adhere to

01:29the state sports betting laws they want these things decided in federal court because federal court or

01:35federal law rather supersedes state law so basically what you have here is massachusetts saying that they

01:40are violating our state law by not having a sports betting license and cal sheet and robin hood saying no

01:45no no no we are regulated by the federal government uh you don't have authority to sue us here so

01:49we have seen similar lawsuits play out in other states so far like nevada states like new jersey and

01:55so far the judges in those cases have mostly sided with the prediction markets ruling that they continue

02:01to operate and it's up to the cftc to kind of figure out what they can and can't offer now the backdrop of

02:07that of course is the cftc has not weighed in at all on this subject despite kind of everyone really urging

02:15them to uh they have a lot of ties to the current administration through cal sheet so a lot of

02:20people view it as they're not going to come out uh unfavorably against it but yeah meanwhile you have

02:24a growing number of states about eight of them have sent cease and desist letters and we'll get into

02:29another one that's taking some action too on this front but you're starting to see more and more kind

02:33of come together in the line and we'll see if it's enough to to sway the courts