00:00Well, over the past year, we've seen many states bring these lawsuits against our registrants,
00:05and they're effectively trying to nullify federal law in doing so.
00:09They're trying to take these state gaming laws and replace the Commodity Exchange Act,
00:14which is a federal statute.
00:16As I mentioned, in the 30s, Congress decided to create a federal regulatory framework
00:21for commodity derivatives, and that includes event contracts on sports and politics
00:25and everything else.
00:26And that was affirmed over the years through expansion of the Act in the 70s in particular
00:30when the CFTC was formed.
00:32And so we take our responsibility to regulate these markets very seriously.
00:36And when we saw states suing our registrants, suspectively saying,
00:39well, this is all gambling when the products are structured as derivatives
00:42and trading on federally regulated exchanges, we had to step in.
00:46And we actually had a victory just the other day in the Third Circuit Court of Appeals
00:51where the court said that the CFTC is the federal regulator of these exchanges
00:55when you have sports contracts trading on our markets, that we are the only regulator.
00:59The state gaming laws don't apply.
01:01And we've brought three lawsuits now against the state of Illinois,
01:04against the state of Arizona, and the state of Connecticut.
01:06And we're going to continue to fight to make sure that our jurisdiction is affirmed in the courts.
01:11We have to reach out to these segments.
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