You don’t even have to read the article, the headline says it all…
I would amend your “breaking the law” comment to “willfully ignoring all regulation, taxes, and labor provisions” perhaps but, same sentiment.
A lot of these companies have taken this approach. Break laws until someone finally notices AND does something about it. The runway to a slap on the wrist is often times more financially beneficial to companies - there is no incentive to stop if you run a billion dollar company and breaking the law gets you a $50M dollar fine you make back in a single month.
I thought SOX (Sarbanes–Oxley Act) was supposed to prevent a lot of this, but I guess companies just continue to find loopholes to exploit.
On the other hand, I've come around to the view that sports betting is a net unqualified bad -- and I didn't necessarily feel that way before the Kalshi/PM explosion.
The problem lies in the legal gray area of what constitutes gambling, and therefore "illegal" gambling. That's what the courts have to decide.
I think most people would say this is gambling. But our legal system has to rule on that before we can start putting people in jail for it.
We should! Finally incentivize rich people to not screw over the rest of society for a quick buck.
Why are casinos operated by Native Americans legal but casinos operated by black people illegal?
I don't think "illegal gambling" is illegal for the reasons you want it to be illegal.
But if you know better then maybe you should just decree from the courtroom in your house and send your ruling to the AGs of all 50 states.
Like, do you have any actual argument as to why it's not gambling, or are you just going to hang it on this plausible deniability? It's not like they knew the 3rd circuit would decide in their favor anyway, so I don't really think your point is the slam dunk you're acting like it is. They knowingly engaged in activities that most states consider to be gambling. They aren't even really denying that. They are just saying it falls under federal regulation, but the argument for that is so shockingly poor, it's hard to imagine how the 3rd circuit's decision could stand, but its only on a preliminary injunction anyway, so it's still not quite a merits decision. The third circuit said that by its own logic, Congress must weigh in on whether or not "bingo" is a swap regulated by the CFTC. If you can't understand how facially stupid that is, I don't know what to say.
Yes I think what they are doing is illegal and they should not be permitted to operate outside the gaming regulations of individual states.
But it doesn't matter what I think. I was trying to have a conversation about the gray areas and why we don't just send people straight to jail for trying out a new, novel, (and potentially illegal), business model.
The courts are figuring it out.