00:00all right so sam a lot of the reporting that you've done over at legal sports report
00:04seemingly indicating states fighting off prediction markets to make them pay taxes
00:09make them join the rest of these sports betting operations and war and winning a lot but i see
00:16here the state of tennessee may be one of the first that could be going the other way in favor
00:21of the prediction mark tell us more yeah as you mentioned craig there's about uh 10 different
00:28lawsuits playing out between states and prediction market companies like talshi and polymarket and
00:33again like you mentioned mainly trying to get these companies what they are offering these financial
00:38uh investing services uh that are on the back of sports pretty much uh trying to get those on the
00:45same page as their licensed sports betting partners you know the states legalize sports betting for a
00:50reason they have licensing processes they have this robust paperwork and you know reporting that you
00:57have to do with the state commission uh with you know all this support system to keep game integrity
01:03make sure people are betting in the proper age uh right now prediction markets really are not subject
01:07to that so that's why tennessee is you know one of several states that's suing to get them to become
01:13subject to that they sent a cease and desist order to kalshi which has resulted in this lawsuit that's now
01:18playing out and the biggest development here is this week a federal judge in tennessee ruled uh in
01:25kalshi's favor uh granting them a preliminary injunction so what this does basically is it's
01:31a temporary win for kalshi it means kalshi can keep operating in the state of tennessee while the
01:36lawsuit continues to play out they haven't had you know all the proceedings the legal proceedings play
01:41out in this lawsuit so far it's still ongoing we don't know exactly when it might be settled
01:45like you mentioned there's a number of other lawsuits where judges have ruled kind of in the
01:50opposite in nevada they did not grant kalshi's preliminary injunction basically the arguments
01:55kalshi's made here is to offer sports betting or it's you know sports prediction markets rather
02:01like tennessee is asking it would have to change this platform where it is only offering a tennessee
02:08exchange different from its entire other business which kalshi has argued you know would damage it
02:13materially uh interestingly enough the court also ruled um that federal law likely override state law which
02:19is kind of the big issue here is you know are these contracts allowed under federal derivatives law
02:24or are they you know stepping on or encroaching on state sports betting laws quickly boiled into a
02:31state's rights versus federal issue with a lot of folks asking the cfdc to provide clarity it obviously
02:38comes you know last week we talked about the cfdc talking about they're going to really defend uh these
02:43lawsuits and the you know the right of uh federal law in this you know in this whole oversight versus
02:50state law uh so bottom line is you know it's a small win for kyle should keep operating in tennessee
02:55but down the road uh when we talk about the supreme court maybe other appellate courts where the fate of
03:01whether prediction markets are indeed sports betting or not ultimately is decided we'll be looking back
03:06to these decisions made earlier in these cases you know again nevada and new jersey kind of ruled the
03:10opposite tennessee ruling a different way so it just goes to show you how kind of mixed the whole bag
03:16is here and how much uncertainty persists and and how much more time there is before we get a real
03:21resolution but certainly an interesting development in tennessee and we'll keep watching what happens in
03:26the myriad of other states as well
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