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00:00Let's get started. Prediction markets. We've started off the show, it feels like every day
00:04this year, a new coalition is set to begin. It includes the companies that are offering
00:10prediction markets here in the United States, CalShe, Crypto.com, Robinhood, Coinbase, and
00:15Underdog, launching a new industry trade group. It's called the Coalition for Prediction Markets.
00:22Why are they forming this coalition, you may ask? Well, I'm here to tell you.
00:25They are promoting federal regulation under the CFTC and pushing back against state gaming
00:31regulators, essentially saying that they want to operate in states and they want to continue
00:36without having oversight, without paying taxes. We'll see if that works for them, but certainly
00:40all partnering together for a coalition as they say more is better than less. And I think that's
00:45the summary there. Meanwhile, Underdog has informed users in North Carolina that they're stopped
00:50offering markets in the Sportsbook app as of 11.59 p.m. on December the 16th. That's next
00:56week. The announcement comes after regulators held a previously unscheduled meeting on December
01:00the 10th. The company has gone headfirst into prediction markets, essentially getting out
01:04of the sports betting universe, and they're a technology partner of Crypto.com. They'll roll
01:08out those prediction markets with a brand new app in North Carolina coming up soon. Also,
01:13CalShe will stay online in Connecticut through the Super Bowl. A federal judge in Connecticut
01:17has blocked the state's Department of Consumer Protection from taking enforcement action against
01:22CalShe. The decision comes after the DCP sent cease and desist letters to CalShe, Crypto.com,
01:27and Robinhood on December the 2nd, ordering them to stop offering sports-related event contracts
01:31in their state. CalShe says they're going to file a countersuit so they can stay, which is called a
01:38injunction. It looks like, for the time being, that Connecticut has agreed to stay online through the
01:46Super Bowl. Okay, we'll see what happens after that. There will be no Super Bowl for the Atlanta
01:51Falcons. So maybe their Super Bowl was last night. Definitely was the case. What in the world happened
01:57to the Tampa Bay Buccaneers in this one with the Falcons committing close to 20, folks, 20, I think
02:02it was 19, but almost 20 penalties in the game yesterday, and the Falcons end up beating Tampa Bay.
02:07The Buccaneers led in this one. I gotta say, I stopped watching. It was 28 to 14. The Falcons came all
02:13the way back, thanks to Kirk Cousins, B. John Robinson, and the best game ever for Kyle Pitts.
02:18It was such a dismal end of the game for the Buccaneers that the Carolina Panthers, folks,
02:25own their destiny. If they win out, they are the champions of the division, not Tampa Bay.
02:33So that led Todd Bowles to drop some expletives for the first time ever that I can recall with him
02:40as head coach of the Bucs. So, folks, it's safe for work because we bleeped him out.
02:45But I don't know that it's safe to watch, but here he is.
02:47What do you tell them in the locker room after a game like this?
02:50It's inexcusable. You don't make excuses. You gotta f***ing care enough where the s*** hurts.
02:56You gotta f***ing care enough where the s*** hurts. It's gotta f***ing mean something to you.
03:01It's more than a job. It's your f***ing livelihood. How well do you know your job? How well can you do
03:06your job? Well, you can't sugarcoat that s***. It was in the f***ing excusable, and there's no f***ing
03:11answer for it. No excuse for it. That's what you tell them in the locker room. You look in the f***ing mirror.
03:18It's always good to win, especially on the road. When you win as a team and you know that it wasn't
03:24perfect and it took just resiliency and continuing to play and make plays, it makes the win all the
03:30all the more sweet and just proud of my teammates, my coaches, and the effort that everybody put
03:37forth to make this happen. Kind of feel good for Kirk Cousins after sort of finding out last minute
03:44that he was going to be the backup for the Falcons. Hasn't really played all that well. I don't know.
03:48Something has me rooting for him a little bit. Okay, Dallas Cowboys get some good news as they try and
03:52chase down the Philadelphia Eagles this week. CeeDee Lamb practiced yesterday, so he could play potentially
03:58this week and keep the Cowboys' playoff hopes alive. Interesting comments, by the way, from him
04:02in the locker room describing what he has been going through to get back on the field.
04:06Obviously, there's been a lot of, like, our work and our discipline and trying to, I guess,
04:12frustrate myself, essentially, to see, like, if I have any more, like, you know, residuals of the
04:19concussion and, like, if I have, like, any type of symptoms. But as for me now, it's just been
04:25heavy on rest, to be honest. Doing everything, meeting all my requirements, kind of getting
04:30ahead of everything, especially with the extra two to three days that we had off. I feel like
04:35that was big.
04:37You know, Smith-Era could be coming to an end faster than expected in Las Vegas. Kenny Pickett
04:44is going to get the start this week for the Las Vegas Raiders. Things have not gone well
04:48for them at quarterback all season long. Pickett, a former high draft pick, says that he is up
04:53for the challenge. If you do get the start, what kind of opportunity would it be?
04:56It's a great one. You know, all you can ask for is an opportunity. It's a great opportunity.
05:00You know, Philly's an unbelievable place to play. I know the fans will be ready to go.
05:04They have a hell of a team. They've kept, you know, there's not a ton of new faces on that team.
05:08So there's a lot of really good players. I know the coaching staff and how prepared that they're
05:13going to be for the game. So it's a great opportunity.
05:15Let's get to a contract extension. Travis Jones, defensive tackle of the Baltimore Ravens.
05:23They announced a three-year, $45 million contract extension. Also a couple of notes from the NFL.
05:29Looks like Marvin Harrison Jr. of the Cardinals could miss this week's game. And for those of you
05:33planning on starting Josh Jacobs in fantasy football, you're going to have to wait till
05:37four o'clock Eastern on Sunday. He's a game time decision. College basketball,
05:41the showdown interstate between Iowa State and Iowa ends up going to the Cyclones. Final score,
05:4866 to 62. That was the final there. Iowa State was nine point favorites. Here's TJ
05:55Olsenberger on getting the win. You know, we've been in spots before at halftime where the game was tight,
06:03not where we were down like that. We talked about it half like that was more adversity than we have
06:08had at halftime in any game this year, both by, you know, they had the game going from a style standpoint,
06:15how they wanted it. And then the other part of it is, you know, us being down and having to fight back
06:20out of it. So, but we've had the experiences with St. John's. We came out quick. Syracuse second half.
06:26We had a great second half on the road on Saturday. So we talked to our guys about, you know,
06:30in the second half, we've had these impacts. We need to have it right now. And they really stepped up
06:35with the pressure and the physicality to, to get to the basket and get to the rim and the foul line.
06:40In the NBA last night, the Houston Rockets did not cover the spread against the Los Angeles Clippers,
06:45but that's not going to make the Clippers any happier. They've been struggling all season long,
06:48six and 19 after losing last night, 115 to 113. Osser Thompson had 22 points and 15 rebounds.
06:58Meanwhile, Nikola Jokic at minus 140 to get a triple double yesterday does not cash.
07:03The Nuggets do beat the Kings 136 to 105. Denver was 10 and a half point favorites. By the way,
07:10Jokic, in case you're wondering, 36 points, 12 rebounds, only eight assists. And also no Giannis,
07:16but the Bucs pull off maybe their biggest upset of the season, beating the Boston Celtics 116 to 101.
07:22Boston was nine and a half point favorites. Kevin Porter had that triple double, if you bet that.
07:2718 points, 10 rebounds, 13 assists. Here's Doc Rivers on pulling off an unlikely victory.
07:32You know, I thought it started in the second quarter. I just thought we caught ourselves.
07:37You know, they jumped on us at the beginning of the game. We got right back in it. I thought that
07:42was the biggest point of the game other than the third was the first and second quarter when they
07:46were up 12 or whatever and we cut it back and it became a game again. That gave us life. Then we came
07:52out in the third quarter. I thought our defense was phenomenal. We basically took away their threes,
07:57you know, and that's what they kept hunting and we kept taking them away and I thought it was great.
08:02Yeah, I thought for the most part, we found advantages, missed them. We'll see what our
08:07crashing numbers are. You know, we ended up with, you know, more shots. You know, we'll see what
08:14those numbers are, but I thought we went through, you know, some good moments of advantage creation
08:18and missing shots, but then I thought, you know, they turned their pressure over a little bit and
08:21we just wanted to sharp on the execution, you know, a little bit in the second half there.
08:25Welcome back to Newswire here on Sports Grid. Always great to have Sam McQuillen to wrap up
08:28the week from Legal Sports Report. By the way, everything Sam and I discussed for the next 10
08:32minutes, you could read about over at LegalSportsReport.com. Sam, welcome back to the show,
08:36getting ready for the holidays and a big weekend, of course, as always of sports,
08:40but our stories today lead off with where they have been for the most part this summer and fall,
08:46which is the prediction markets, and another company has decided to solely focus on them in
08:54a certain state. I don't want to steal your thunder, so you'll tell us more about that and
08:58maybe why the decision was made. Yeah, and I expect that'll be the case going into the winter as well,
09:05and even into next spring and next summer, where prediction markets are really dominating all the
09:09sports betting news, the latest here being that Underdog, which only had a sports book in North
09:15Carolina, is now shutting down that sports book. Next Wednesday is when it will fully stop being a
09:22sports book, and instead, it will replace it with prediction markets. It was the only state where
09:27Underdog had a sports book, launched there about March of 2024, so kind of the company's original plan
09:35had been to acquire a lot of users and customers as a daily fantasy sports product. It obviously had a
09:42lot of kind of controversy over how it did that originally with its pick-em games, which a lot
09:47of people sort of liken to parlays without following the sports rules. It's really just kind of
09:54abandoning its sports betting hopes, switching fully over to prediction markets, where it's now live in
09:59about 25 states under a partnership with crypto.com, which is the one that supplies the markets, and
10:05underdog kind of just puts it on its platform. But kind of the details around the shutdown really
10:12signal that it's going to be solely focusing on prediction markets going forward now. It's going to
10:18actually pay out any outstanding bets in the maximum amount before that date. So even futures you have on
10:26things that haven't happened, or won't likely won't happen, it's according to its website going to pay out. And
10:32customers don't even have to like go in and take their funds out as they usually have to do by a
10:38certain date in a lot of places, because underdog is just switching over to its fantasy product and
10:43prediction market in the state. So if you get paid out any of the bets you had outstanding, you don't
10:48need to rush in before next Wednesday, you can kind of just wait and use it on the new product that
10:53they're going to have there, which again, is probably part of their plan to kind of convert everything
10:58over to a prediction market. And I think really signals just how massive prediction markets have
11:04become in the sports betting industry, when you have a company like underdog, which spent so much
11:09time acquiring licenses and states to eventually build out its sports book, had its sports book,
11:15and now all of a sudden, you have prediction markets, which seem like they're here to stay and
11:19a major company is switching over to that as its main product. So it never signaled that it was going
11:25to not do this. It withdrawed its license in Missouri just before the launch about a month ago.
11:30So it never really said quite out flat that it was going to be only prediction markets. But
11:35now it looks like that's very much the case. And it'll be really interesting to watch next year as
11:40you know, you have prediction markets in this Wild West and companies now fully kind of betting on
11:46them. DraftKings, Vandal, of course, expected to follow as well. All right, let's get to another
11:51prediction market company, one of the prominent ones, Kalshi, of course, undergoing some changes
11:56in the state of Connecticut. They want to stay operating. The state of Connecticut says you got
11:59to get out. But at least the two sides have come together here to say, let's take a look at this
12:04coming up in February. That's really good news for Kalshi. But does this mean it's the beginning of
12:09the end for them there with this agreement? Yeah, this is a really interesting case in terms of all
12:16the state prediction market fights we have. Connecticut actually went as far to not just
12:22send cease and desist to Kalshi, but try to enforce them leaving the state. It's kind of common knowledge
12:28that whenever a cease and desist is sent, it doesn't really have a lot of weight or teeth behind it
12:33unless federal authorities get involved. Or in this case, the Connecticut's Department of Consumer
12:39Protections getting involved, trying to kick Kalshi out of the state. In response, Kalshi kind of
12:44countersued them and took them to court. And now the Connecticut Department of Consumer Protection
12:49has agreed to a joint stipulation agreement, which pretty much puts this all into proceedings in
12:57court over the next two months. So that means that Kalshi will get to keep offering its prediction
13:01markets in Connecticut over the next two months while the legal proceedings play out. Kalshi pretty
13:07much argued that it would be harmed immediately if it had to leave the state and the cease and desist
13:12was enforced. So in response, Connecticut has agreed to respond to their motion for preliminary
13:18injunction by January 9th. Then Kalshi has until January 30th to respond. And then both sides go to
13:25court in U.S. District Court in Connecticut on February 12th. But this is just, you know, yet another
13:31example of how Kalshi is kind of balancing the many state fights it has over prediction markets. You know,
13:37certainly Nevada, New Jersey, Maryland, a host of other states have taken issue. Connecticut really
13:43the one that's gone farthest with actually trying to get the cease and desist enforced. Obviously,
13:48Connecticut thinks that this is sports betting or unlicensed wagering. In their argument, they've
13:53said that, you know, they don't have the integrity monitoring procedures that licensed sports books
13:58have to have in Connecticut. Winnings may not be paid out as advertised because it kind of all goes
14:04down to the prediction market house rules and is really subject for the companies themselves. So,
14:09you know, not instances like where you have people going to the state arguing that, hey,
14:14DraftKings and FanDuel didn't pay me out correctly. There's actually a recourse for people who can,
14:19you know, work that through with the state. It's not in this case. As well as offering prediction
14:24markets to people under the age of 21. You have to be 18 to play on Kalshi. In Connecticut,
14:29obviously, you have to be 21, as well as offering markets that Connecticut says it's concerned about
14:35insider trading. These are things that are, you're not allowed to bet on sports books in
14:40Connecticut. Things like award shows, things like who's going to win NFL MVP, things that are kind
14:45of determined before they're announced can bet on Kalshi. So, it'll be a really interesting court case
14:51to follow among the other ones throughout, you know, the first two months of next year.
14:55What the judges initially said, who they side with, and how it might influence other states is
15:02obviously, there's a lot of legal fights in Kalshi's hands right now. But so far,
15:06they've been allowed to kind of just persist for the next couple months. So, we'll definitely keep
15:10an eye on this one. And meanwhile, it looks like all the prediction markets are kind of getting
15:15together here, Sam, to fight all of the different states and who knows beyond what to get them out.
15:22A coalition has been formed. Do they, is that what they feel, Sam? Basically, if they all partner
15:27together and, you know, all fighting for the same thing, maybe that helps their situation?
15:33Yeah, it certainly seems that way. It kind of just seemed like a matter of time before we had news
15:38that the major prediction market players and Kalshi and crypto.com were going to form their own
15:44Washington-based trade group, much like sports books eventually formed with the Sports Betting
15:50Alliance, where, you know, they lobby politicians to treat them favorably and try to work out all the
15:56framework in this really massive kind of, you know, murky legal environment across all the states.
16:03They say they're going to try to get the CFTC more involved with them. You know, the CFTC
16:07is the entity that's theoretically supposed to oversee this stuff, but they've kind of indicated so far
16:13that they don't really want to get involved while the prediction markets themselves are kind of,
16:18you know, championing them as, you know, they're the ones who oversee us, if, but because they're not
16:24really being overseen by them, that kind of means that they're allowed to just proceed kind of as
16:29regular, you know, scheduled programming. Obviously, like we alluded to in the Connecticut case, a lot
16:33of the arguments have stemmed around, like, protections that prediction markets don't have,
16:38that sports books are required to have. So that's going to be one of the main focuses of this new
16:42coalition as well, which also counts underdog as a partner, as well as Robinhood, which is also being
16:49sued in these states, because they're the ones that are kind of partnered with prediction markets
16:53offering this product, notably Polymarket, which is not fully back in the US yet, although it's
16:58anticipated to come kind of any day now. They're not involved in the coalition yet, though the
17:03coalition says it's, you know, negotiating with more members to join. So it'll be interesting to see
17:08if kind of Calci's biggest rival joins in with them. And like you say, Craig, you know, bands together
17:12to fight this kind of legal pushback they're facing now, or if they kind of operate from a different
17:18stance, whether that might splinter prediction markets hopes next year or not. So yeah, it'll be
17:24really interesting to see kind of their initial work next year, and another just yet another
17:28development in the crazy prediction markets world. Agreed, Sam, great stuff. As always, have a great
17:33weekend. We'll catch up with you on Monday here on next edition of Newswire. Thanks again.
17:38Sounds good. Thanks, Greg.
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