00:00And it seems like, Dan, this is going to be a year where we're going to really find out if
00:03prediction markets are going to kind of work beyond what we currently know.
00:09Because while they are expanding and other companies are certainly getting into it, we're getting finally more pushback from states
00:15all across the country.
00:17And in particular, Nevada, Massachusetts, seemingly are trying to lead the forefront to say, hey, they're not saying this, Dan,
00:25but either, hey, pay some taxes, get regulated or get out.
00:29Yeah. Well, Craig, they are saying it. And Nevada is at the vanguard of states being aggressive and proactive in
00:36dealing with prediction market platforms.
00:38They have taken or been sued five different times and have won each one of those court cases.
00:44So far, preliminarily, they've beaten CalShift, Polymarket, Coinbase, Crypto.com, and Robinhood.
00:51Several of those cases are on appeal. But the executive director, actually the chair of the Nevada Gaming Control Board,
00:57Mike Dreitzer,
00:58is taking a take-no-prisoners approach. And he is now targeting CalShift for a civil enforcement proceeding in state
01:06court.
01:07CalShift during the Super Bowl week had these billboards and advertising all over the Las Vegas Strip.
01:13And I think that got under the skin of the Nevada Gaming Control Board.
01:17And while they are waiting for the appeal to be decided by the Ninth Circuit U.S. Court of Appeals,
01:22Nevada doesn't want to wait any longer.
01:24It wants to do to CalShift what it successfully did to Polymarket, Coinbase, Robinhood, and Crypto.com,
01:32and force those companies out of Las Vegas or out of Nevada right now, today.
01:37And currently, CalShift is the only prediction market platform operating in California.
01:42They're scaling up. They're massively increasing their trading handle.
01:46And I think the Nevada Gaming Control Board finally said enough is enough and told the Ninth Circuit U.S.
01:52Court of Appeals
01:52that it intends on filing a lawsuit in state court next week to try to, you know,
01:59maybe push the Ninth Circuit along in deciding CalShift's motion for a stay pending appeal.
02:05That has been languishing for about a month.
02:08And until that motion is decided, Nevada's hands were tied.
02:11Well, they decided enough is enough.
02:13Let's take it to the next level and try to, you know, push the Ninth Circuit to make a ruling.
02:19Otherwise, we're going to be filing a lawsuit because the irreparable harm to the public,
02:23to the Nevada gaming industry magnifies, grows day by day by day.
02:28So it's a very interesting gambit that the state of Nevada took.
02:32They could blow up in their face potentially and offend the Ninth Circuit.
02:35But I think ultimately they made the right choice to proceed aggressively here
02:40because without such action, they would have been waiting another two, three months
02:44for a decision on CalShift's stay motion.
02:46So I think they made a calculated decision and tried to do it in a way which did not offend
02:52the Ninth Circuit.
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