00:00California, no time soon will they legalize sports betting, but it appears that prediction markets, at least for the time being, in California, Sam, are here to stay.
00:10Yeah, Cal, she and Robin Hood scored a major win for sports prediction markets in California this past week.
00:16A federal judge ruled that these markets they're offering are actually less like sports betting and more like financial derivatives, which, as we know, are regulated by the CFTC at a federal level, not a state level.
00:27California does not have sports betting legal.
00:30So in the meantime, people have been using these prediction markets to essentially place bets on sports.
00:35These things look very similar to sports books.
00:38And the reason the tribes sued to stop them is because tribes have exclusive rights over gaming in the state.
00:44That's class three gaming casino gaming and have basically prevented sports betting from being legal.
00:48So this is a major win for Cal.
00:50She essentially allowed to just keep operating in the state.
00:53We know California is really significant.
00:55There's a couple other states where they're facing lawsuits.
00:57But California, again, the largest legal, the largest market in the country without sports betting.
01:03So there's a huge gap and huge lost opportunity for these sports books right now.
01:07Now, you know, recently you've had DraftKings and FanDuel saying they want to offer sports prediction markets in those states.
01:13So this could be very significant in allowing that to happen as well when you talk about the pushback that they've gotten there.
01:19But huge win for Kalshi and could impact the lawsuits going on in other states right now as well.
01:24There's like almost half a dozen other states which have challenged us in some way.
01:28Ultimately, this could all end up at the Supreme Court, but in the meantime, it's a big win for Kalshi.
Be the first to comment