00:00i saw on social media you posted earlier today that cal she is getting some backing financially
00:05from investors but i don't know if that's the right play at this point because
00:10at some point this year next year states are going to ask for cal she to be taxed
00:19and i think they're going to have to pay taxes if they continue to operate in this space
00:24specifically the state of pennsylvania is looking and saying hey our sports books are paying us tax
00:30money every month to do the same thing you guys are doing yeah add pennsylvania to that growing
00:36number of states which is not only telling cal she to leave which cal she has responded with
00:40lawsuits saying no we're not going to leave because we don't think that what you're talking about us
00:45being an unlicensed sports book is accurate but now pennsylvania wrote a letter this week asking
00:50congress to intervene which if you know anything about congress they don't really like to get
00:54involved in the state issues that's one of the reasons that sports betting was left up to the
00:58states in the first place congress really has they don't do much around gambling usually because it's
01:04again left up to the states and the tribes for the most part so the fact that a major gaming state in
01:09pennsylvania it's always top five and handle and it's really big market obviously they're urging congress
01:14to do something because the cftc the the government agency which is supposed to oversee cal she and these
01:20prediction markets and kind of make sure that they're not offering things they're not supposed
01:23to be doing they haven't stepped in so far they've kind of just been you know hands off they're going
01:28to continue to operate the lawsuits are playing out to your point craig where eventually some point
01:32you think that it might you know get these companies to actually pay money and follow these rules but
01:38lawsuits take a long time so in the meantime i think states are going to try everything they can to
01:42not just use their power but to leverage any voice they have with other people who who make decisions
01:49like a congress uh you've seen other states send cease and desist orders you've seen michigan just
01:53this week as well uh issued a letter to operators saying if you partner with a cal she if you partner
01:59with a robin hood to do a prediction market it might cost you your betting license in michigan which again
02:04is a huge kind of dilemma for sports books that want to get in on this action want to be able to offer
02:09these things without taxes i'm sure you know if they had their way they would never pay any taxes but
02:13obviously there's a reason we regulate things but while they wait for these decisions to play out
02:20you just have you have these uh prediction markets just taking money in the meantime and to your point
02:25the uh the five billion dollar valuation for cal she which was just announced today is only a reflection
02:30of how i believe wall street and the market thinks that this is a huge opportunity for us right now
02:35regardless of regulation when it may come down the line who knows when that's going to happen
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