🚨 BREAKING: Arkansas sues Kalshi in state court, seeking restitution, injunctive relief, actual and compensatory damages, and civil penalties. The state is represented by the AG’s office and private class action counsel. Somebody is listening. 👀 (h/t @DustinGouker)

BREAKING: Illinois federal district court sides with Kalshi, Coinbase, and CFTC against Illinois state officials, granting their motions for preliminary injunction. This creates an intra-circuit split with the Wisconsin decision, now on appeal to the CA7.

🚨JUST IN: The CFTC has submitted an interim final rule titled “Further Definition of ‘Swap’ to Exclude Casino-Style Gambling Products” and a proposed rule titled “Further Definition of ‘Swap’ to Include Event Contracts” to the White House’s Office of Information and Regulatory Affairs (OIRA) for review. OIRA review is a procedural step that precedes public release, and the agency has not yet made the text public, so the specific provisions remain unclear. However, the interim final rule, once released, would take effect immediately upon publication, bypassing the standard notice and public comment period. If the interim rule goes beyond the title’s suggestion (e.g., excluding casino-style products) and provides tacit authorization for sports-event contracts, it could prompt immediate APA litigation in federal court.

Sorry Tarek, Kalshi is not just like Uber. Comparing local ride-sharing rules to federal and state gambling statutes that target underage gambling, problem gambling, financial exploitation, money laundering, and sports bribery oversimplifies a massive legal and regulatory divide.

BREAKING: The Florida Attorney General has gone after the payment processors that worked with online sweepstakes casino operators VGW and Stake. Among those sued are Worldpay, Trustly, Praxis, and Breeze Labs. The AG is seeking to recover all customer losses from these firms.

CNBC: Novig surpassed $125 million in first-week sports contract notional volume, topping rivals Kalshi and Polymarket, as legal and regulatory obstacles loom. Via @AnanyaBChetia