From the trading desk …
A slow day for me on the NADEX. This morning, I bought the EUR/USD > 1.1540 that expired at 3 pm today and sold the EUR/USD > 1.1640 that also expired at 3pm today. Price at expiration was 1.15645. Markets were still digesting the May and June downward revision of 258,000 jobs. President Donald Trump’s reaction to the revision was to fire the chief of the U.S. Bureau of Labor Statistics.
I calculated a forward price for the EUR/USD expiring this Friday at 1.1574.
From the legal desk …
The United States District Court for the District of Maryland denied a motion by Kalshiex LLC (Kalshiex) for a preliminary injunction against the Maryland Lottery and Gaming Control Agency and the Maryland Lottery and Gaming Control Commission (Maryland Lottery). Maryland Lottery determined that Kalshiex was in violation of the state’s laws against exchange wagering.
Kalshiex filed a lawsuit against Maryland Lottery asserting that the Commodity Exchange Act preempted compliance with Maryland state law. Kalshiex also filed a preliminary injunction against Maryland Lottery arguing that Kalshiex would likely succeed on its preemption claim.
The district court found otherwise stating that “Kalshiex did not establish that Congress clearly intended to strip states of their authority to regulate gambling if the company offering such wagering opportunities has been approved to sponsor a designated contracts market for commodities trading.”
An exchange wager is a wager where a bettor wagers with or against another bettor through a sports wagering licensee.
A designated contracts market is a board of trade or an exchange operating under the authority of the Commodity Futures Trading Commission. Designated contracts markets offer standardized futures and options contracts to the public.
Event contracts are excluded commodities which are defined as an occurrence, the extent of an occurrence, or contingency (other than a change in the price, rate, value, or level of a commodity … ) that is beyond the control of the parties to the relevant contract, agreement, or transaction; and associated with a financial, commercial, or economic consequence.
This case caught my eye because Kalshiex, as a designated contract market, also sells event contracts for foreign exchange. The focus of this case, however, is on Kalshiex’ sports-wagering events contracts.
Alton Drew
4 August 2025
For a legal analysis of the events mentioned in this post, contact me at altondrew@altondrew.com.
Disclaimer: This post is provided for informational purposes only. It is not being offered as trading advice. Trading is risky. Before you embark on your trading journey, please consult with a professional trading advisor.
Lawyers Write the Bets. Bankers Sell the Bets. 