GREEN BAY, WI (WTAQ-WLUK) – A federal judge rejected a federal agency’s attempt to block Wisconsin from enforcing its sports betting laws against commodity training websites, such as Kalshi and CDNA.
The Commodity Futures Trading Commission filed suit against Wisconsin and four other states.
The CFTC argues that the sports-related event contracts are swaps, a type of financial derivative regulated exclusively by federal commodities law, which preempts the Wisconsin gambling statutes as applied to such contracts.
Wisconsin claims that the companies that are offering these “event contracts” are facilitating sports betting, a form of illegal gambling under Wisconsin law.
The CFTC asked the court for a preliminary injunction from the court to stop Wisconsin from enforcing its law.
But in a 28-page ruling issued Wednesday, Green Bay-based federal Judge William Griesbach ruled against the CFTC, saying it failed to show a likelihood of success.
One reason cited is the judge the CFTC has not shown that such sports bets fall under the definition of “swaps” trades.
Also, the CFTC hasn’t proven its assertion that the state’s enforcement of its law intrudes on federal sovereignty, the court ruled.
“Wisconsin’s gambling statutes do not conflict with federal commodities regulations and are not preempted by them,” the decision states.
An Aug. 25 hearing is set to plan future scheduling in the case.
The decision could be appealed.
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