00:00Okay, so now let's move on to the CFTC and prediction markets, where eventually this is
00:04going to come to a head. There's a coalition for prediction markets. They would like the CFTC
00:09to get involved, or at least figure out one way or the other where this is headed.
00:14I think regardless of what we comment on, Pat, you, me, and everybody else, it's still the world
00:19of the big unknown as to where we will be at the end of this year, where we'll be next
00:23year,
00:23where we'll be in the future. But as of now, prediction markets, they continue to roll on.
00:28Yeah, you know, when I started reporting about the legislation and regulation of sports betting,
00:33I never thought something like this would happen. You know, over the years, you and I have talked
00:36about DFS 2.0 that emerged alongside the sports books, the sweepstakes providers that have emerged,
00:43and then now prediction markets. And yeah, we've got state regulators suing, you know,
00:48Kelsey and Polymarket and the like saying, hey, you can't do what you're doing. You're offering
00:54sports betting without a license. And then of course, you've got them saying, well, we're regulated
00:58by the CFTC, which has federal jurisdiction. And these are swaps, we're fine doing what we're doing.
01:05And now the CFTC is getting involved in countersuing state regulators and such. So this will
01:10very likely get to the Supreme Court before we know actually what happens. But what has happened
01:15since then is the CFTC has said, okay, we're going to start putting in rulemaking and make sure that,
01:21you know, people are following some sort of rules. And this isn't just the Wild West,
01:25which a lawyer recently said, we're at the tail end of the Wild Wild West of prediction markets.
01:29So we'll see what happens after these rules are in place. But last week, they had a public
01:34commentary period kind of close up. The Coalition for Prediction Markets, which notably does not
01:39include Kelsey or Polymarket, but is made up of Coinbase crypto. Oh, Kelsey is in it, I'm sorry,
01:45Robinhood and Underdog. And they're basically saying, you know, do what you're doing. We don't want to
01:50see too much change. You know, sports does fit within the swap definition, which you can trade
01:56on. So there you go. But they also made sure to say, we don't want any sort of casino gaming
02:05integrated into prediction markets or anything that could resemble casino gaming. So I think
02:10that's kind of trying to help distance itself from the gambling kind of reputation that it has
02:15kind of emerged with it. So yeah, I think we'll see some rules drop from the CFTC soon,
02:22and kind of further define what prediction markets can and cannot do and how these operators are able
02:28to offer in various states, at least until we get a Supreme Court ruling down the line. So this is
02:33something that again, you know, when I started doing this five years ago, I never would have thought
02:37I'd be watching this kind of crazy development. But boy, these things are hot. And certainly the talk of
02:43people who don't even think about sports betting or online gambling. So here we are.
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