- Former senator Christopher J. Dodd and ex-CFTC chair Gary Gensler told the U.S. Supreme Court (SCOTUS) their Act didn’t appoint the CFTC as a betting regulator.
- They claim sports betting was never part of the equation and the Dodd-Frank Act didn’t precede state gaming law in their respective amicus briefs.
- Now, a former U.S. senator, former CFTC chair, nearly 150 tribes, the NFL, and the American Gaming Association urge SCOTUS to hear the prediction market case.
WASHINGTON – The Senator and CFTC chairman responsible for the implementation of the 2010 Dodd-Frank Act told SCOTUS that the act didn’t grant the Commodity Futures Trading Commission as a regulator for sports betting. The pair of important figures made their points clear in respective amicus briefs urging SCOTUS to hear the prediction markets case, bringing the total to 11 briefs for New Jersey.
Gary Gensler, former CFTC Chairman, and Christopher J. Dodd, former U.S. Senator, argued that sports betting “event contracts” aren’t swaps and that the Dodd-Frank act didn’t establish federal regulation for sports betting.
“Congress did not set out to authorize nationwide sports betting through derivatives markets or displace decades of state and tribal primacy over gaming regulation,” said Dodd is his amicus brief.
Gensler also made his opinion clear in his amicus brief, stating that “Congress did not transfer jurisdiction over sports betting from the States to the CFTC. When Congress amended the CEA through Dodd-Frank, it was addressing the causes of the recent financial crisis, not undoing federal policy against sports betting and displacing traditional state and tribal regulation. Congress did not include sports-betting contracts within the statutory definition of swap.”
Dodd, Gensler Join Group Against Kalshi
The addition of Dodd and Gensler’s amici brings the grand total in support of New Jersey to 11 briefs in urging SCOTUS to take the prediction markets case. With the disagreement among circuit courts (Sixth, Ninth Circuits rule against, Third Circuits rule in favor of Kalshi), it’s time for SCOTUS to step in and decide.
That’s the argument that was made in the NFL brief, where the league called upon SCOTUS to hear the federal/state regulation battle. Also included in that group of 11 briefs is one from the American Gaming Association and a collective brief from 145 tribes/tribal organizations, questioning whether one federal law preempts another federal law in the case of the Commodity Exchange Act and the Indian Gaming Regulatory Act.
