WEBVTT 00:00.000 --> 00:26.280 Good afternoon, everybody. 00:26.280 --> 00:27.280 Thanks for joining. 00:27.280 --> 00:29.360 I'm Attorney General Josh Call. 00:29.360 --> 00:34.200 I'm here today to announce that the Wisconsin Department of Justice today has filed lawsuits 00:34.200 --> 00:39.520 against multiple companies and their affiliates alleging that they have been facilitating illegal 00:39.520 --> 00:41.960 sports betting in Wisconsin. 00:41.960 --> 00:49.840 The defendants in these cases include Kelsey, Robinhood, Coinbase, Hollymarket, Crypto.com, 00:49.840 --> 00:53.360 as well as affiliates of those companies. 00:53.360 --> 00:58.120 Except in limited circumstances, sports betting and other forms of commercial gambling have 00:58.120 --> 01:01.600 long been illegal in the state of Wisconsin. 01:01.600 --> 01:07.480 No company is above this law, no matter how creatively those companies try to disguise 01:07.480 --> 01:10.040 the activity that they're engaged in. 01:10.040 --> 01:15.960 As we allege in these lawsuits, these companies have chosen to flout Wisconsin law by thinly 01:15.960 --> 01:21.040 disguising the sports betting that they facilitate through what are called event contracts. 01:21.040 --> 01:26.360 But our position in this case is that event contracts are no different than ordinary sports 01:26.360 --> 01:27.680 bets. 01:27.680 --> 01:32.800 The companies collect a fee we allege for every bet that's made, leading them to earn 01:32.800 --> 01:38.680 significant revenue from Wisconsinites through violations of our state's gambling regulations. 01:38.680 --> 01:43.080 So we are asking the court in this case to declare that making sports-related events 01:43.080 --> 01:50.960 contracts available for trading by customers in Wisconsin is a violation of Wisconsin statutes. 01:50.960 --> 01:54.960 But these companies have repeatedly and openly violated those laws. 01:54.960 --> 01:59.720 And we're asking for the sports betting that we allege is going on and illegal to be shut 01:59.720 --> 02:00.720 down. 02:00.720 --> 02:06.600 So with that, I'm happy to answer any questions folks have about these new cases. 02:06.600 --> 02:07.880 Good afternoon, everyone. 02:07.880 --> 02:10.840 We will now take on topic questions from media members. 02:10.840 --> 02:13.240 If you have a question, please raise your hand. 02:13.240 --> 02:16.360 I will call on you in the order in which you ask your question. 02:16.360 --> 02:19.920 Once we call on you, we will promote you to panelists that you may speak. 02:19.920 --> 02:21.480 This may take a second. 02:21.480 --> 02:24.600 As a reminder, if you're on your phone, you can press star nine to raise or lower your 02:24.600 --> 02:30.040 hand and star six to mute or unmute yourself once you're called on. 02:30.040 --> 02:36.120 The first question will go to Eric Gunn. 02:36.120 --> 02:37.520 Thank you very much. 02:37.520 --> 02:43.360 Is this just a Wisconsin case or is it a multi-state? 02:43.360 --> 02:50.280 Are you with a number of other states that are filing also against these defendants? 02:50.280 --> 02:55.280 This is a Wisconsin specific case, though I would note, Eric, there are similar cases 02:55.280 --> 03:00.200 in a number of other states. 03:00.200 --> 03:03.200 Next question goes to Matt Smith. 03:03.200 --> 03:08.600 Hi, Attorney General, thank you. 03:08.600 --> 03:15.760 Is this related at all to the governor signing the online sports betting bill? 03:15.760 --> 03:17.840 There's no direct relationship between the two. 03:17.840 --> 03:23.840 What we are alleging is violations of Wisconsin law and the allegations would be the same 03:23.840 --> 03:28.720 whether or not there had been the new legislation passed. 03:28.720 --> 03:36.400 The only connection is that they relate to the same topic, which is online sports betting. 03:36.400 --> 03:39.120 Next question goes to Kate Morton. 03:39.120 --> 03:43.560 Hi, quick question. 03:43.560 --> 03:48.320 I was also wanting to ask about this new law that Governor Evers signed. 03:48.320 --> 03:54.560 How if at all this could play into that and also wouldn't this just strengthen the tribe's 03:54.560 --> 04:01.640 role in online gaming if and when these gaming compacts are revised in the state? 04:01.640 --> 04:06.840 The new law won't have bearing on what's alleged in this suit because the new law specifically 04:06.840 --> 04:13.480 relates to gaming that is conducted through facilities that are on tribal lands and with 04:13.480 --> 04:20.560 Wisconsin, that's not the case in these cases and so the allegations here are unimpacted 04:20.560 --> 04:24.840 by that new legislation. 04:24.840 --> 04:28.840 Next question goes to Todd Richmond. 04:28.840 --> 04:38.120 Hi, two questions, can we get copies of these lawsuits ASAP? 04:38.120 --> 04:44.520 And also, what other states have sued and similar to this? 04:44.520 --> 04:49.240 Yeah, so first in terms of the copies, we, if we haven't already sent out a release, 04:49.240 --> 04:51.080 we will be shortly. 04:51.080 --> 04:54.240 That will include a copy of the complaints. 04:54.240 --> 04:59.800 So if anybody needs that and doesn't receive that, please feel free to contact our office. 04:59.800 --> 05:01.720 We'll get that to you. 05:01.720 --> 05:06.320 In terms of the states, there are a handful of states where there were lawsuits that have 05:06.320 --> 05:10.680 been brought in New York state, just recently filed one and we can get you a more comprehensive 05:10.680 --> 05:12.800 list, Todd, if that's helpful. 05:12.800 --> 05:18.040 There are also a number of states where companies that are alleged to have engaged in this activity 05:18.040 --> 05:24.280 have themselves preemptively filed suits to try to prevent the states from bringing enforcement 05:24.280 --> 05:27.120 actions. 05:27.120 --> 05:30.280 Next question goes to Kimberly. 05:31.280 --> 05:40.960 Yeah, what is your message to people who use these apps who may be impacted by this lawsuit? 05:40.960 --> 05:46.120 Our focus in this case is on the large companies that are operating these. 05:46.120 --> 05:53.320 As I mentioned, the defendants here are Kelsey, Robinhood, Coinbase, Hollymarket, Crypto.com, 05:53.320 --> 05:54.320 and their affiliates. 05:54.320 --> 06:03.080 And so we are taking action to uphold Wisconsin law and ultimately seeking to shut down the 06:03.080 --> 06:09.560 sports gambling operations that we allege that those companies are engaging in in Wisconsin. 06:09.560 --> 06:12.800 Next question goes to Jason. 06:12.800 --> 06:19.480 Mr. Attorney General, thank you so much for your time. 06:19.480 --> 06:23.320 Do you know how much money these companies have made on Wisconsin bets? 06:24.320 --> 06:26.960 We don't have Wisconsin specific information in the complaint. 06:26.960 --> 06:33.000 We make reference to reporting that indicated that Kelsey, for example, made about $1.3 06:33.000 --> 06:40.000 billion in a year that's not Wisconsin specific, but we do know is that, and frankly, if you 06:40.000 --> 06:44.840 watch television commercials during a significant sporting event, you can see this. 06:44.840 --> 06:51.480 There's been widespread promotion of this activity and just simply going online, you 06:51.480 --> 06:57.560 can see how an alleged sports back could be placed. 06:57.560 --> 07:00.520 Next question goes to Jesse. 07:00.520 --> 07:05.200 Hi, thank you. 07:05.200 --> 07:06.840 That's sort of technical question. 07:06.840 --> 07:10.520 When you refer to event contracts, is that interchangeable with prediction markets or 07:10.520 --> 07:14.120 is it a subset of that activity? 07:14.120 --> 07:20.720 The platforms where this is taking place are known as prediction markets and what we allege 07:20.720 --> 07:25.280 is that the way these companies have framed this is that you can, on those prediction 07:25.280 --> 07:29.000 markets, purchase what they call an event contract. 07:29.000 --> 07:35.760 What we allege here is that the event contracts on sporting events are indistinguishable legally 07:35.760 --> 07:40.680 or practically, for that matter, from sports betting and constitute sports betting under 07:40.680 --> 07:43.880 Wisconsin law. 07:43.880 --> 07:47.040 Next question goes to Todd. 07:47.040 --> 07:55.560 Yeah, I know that you said there is no relationship between the bill the governor signed in these 07:55.560 --> 07:59.280 lawsuits, but the timing is just blatant. 07:59.280 --> 08:05.640 I'm wondering, did the tribes request that these lawsuits be filed, or is this a precursor 08:05.640 --> 08:11.320 to some kind of the new compact negotiations that the state must shut these operations 08:11.320 --> 08:13.920 down at the request of the tribes? 08:14.920 --> 08:16.440 Yeah, a couple of things I'll say, Todd. 08:16.440 --> 08:21.160 So first, in terms of your question about the timing, I mean, one thing that I think 08:21.160 --> 08:28.000 is clear is that there has been a huge increase in this type of activity that we allege is 08:28.000 --> 08:33.240 occurring in recent years, and that has had a number of consequences. 08:33.240 --> 08:37.160 And I certainly think that that may very well be linked to the fact that there was legislative 08:37.160 --> 08:42.520 activity on this topic recently, just as there has been litigation activity. 08:42.520 --> 08:49.840 But Wisconsin is not unique in bringing litigation activity on this topic, like I mentioned, 08:49.840 --> 08:52.240 as I indicated in New York. 08:52.240 --> 08:57.200 For example, just recently filed suit, and there are suits in other states as well. 08:57.200 --> 09:03.480 Ultimately, in this case, the decision that we make, I'm certainly aware that folks, there 09:03.480 --> 09:06.920 are folks out there who want to see these laws enforced, but the decisions that we make 09:06.920 --> 09:14.160 are based on the facts and the law, and that's what drove our decision to file the suit. 09:14.160 --> 09:15.920 These suits, I should say. 09:15.920 --> 09:18.920 Next question goes to Molly. 09:18.920 --> 09:28.800 Hi, I was wondering if you're seeking monetary damages, and if not, why not? 09:28.800 --> 09:33.960 Our primary focus right now is on shutting down the activity that we allege is unlawful 09:33.960 --> 09:38.160 sports betting that's being facilitated by these defendants. 09:38.160 --> 09:44.680 Now as the case moves forward, if we are foreclosing what we may do, but if we think that 09:44.680 --> 09:50.360 there is an adequate legal basis to seek some sort of relief and that the facts support 09:50.360 --> 09:56.840 that, we're not foreclosing that, but right now our primary focus is on shutting down 09:56.840 --> 10:03.480 the activity that we allege is illegal sports betting. 10:03.480 --> 10:07.880 The next question, we'll go to Jason, and this will be our last call for questions, 10:07.880 --> 10:12.880 so if anyone else has a question, please raise your hand after Jason, and we'll call on you. 10:12.880 --> 10:16.360 Jason, you're next. 10:16.360 --> 10:21.960 Does this complaint apply to just sports, or does it also apply to wages placed on world 10:21.960 --> 10:27.440 events like the war in Iran and politics like who's going to be the next president? 10:27.440 --> 10:31.240 The focus of these complaints is sports betting specifically. 10:31.240 --> 10:36.920 We allege that that's a very large percentage in the case of Kalshi, for example, of what 10:36.920 --> 10:41.000 takes place on their prediction market platform. 10:41.000 --> 10:48.320 So the focus of this is specifically on alleged sports bets. 10:48.320 --> 10:51.600 Next question goes to Sarah. 10:51.600 --> 11:01.120 Hi, the Trump administration recently issued an order reclassifying medical marijuana as 11:01.120 --> 11:07.200 well as FDA approved products that contain marijuana, and that's medical marijuana in 11:07.200 --> 11:09.960 states that license it. 11:09.960 --> 11:15.240 Will this order have any effect on Wisconsin, and if so what, and do you have any thoughts 11:15.240 --> 11:18.040 on what this order might signal going forward? 11:18.040 --> 11:22.000 Yeah, I saw the reporting that there has been this reclassification. 11:22.000 --> 11:26.640 I have not yet had a chance to analyze what the Trump administration has said. 11:26.640 --> 11:33.640 Of course, in Wisconsin, currently marijuana is criminalized, and so where I think there 11:33.640 --> 11:38.800 may be an impact is if the laws in Wisconsin change, then we would need to see how this 11:38.800 --> 11:44.640 federal update applies with respect to those changes of Wisconsin law. 11:44.640 --> 11:47.000 All right, thank you. 11:47.000 --> 11:52.200 We do not see any other hands raised, so we are going to conclude today's press conference. 11:52.200 --> 11:53.200 Thank you all for joining. 11:53.200 --> 11:57.400 If you have any further questions, please don't hesitate to reach out to the DOJ communications 11:57.400 --> 12:03.040 team at dojcommunications at doj.state.wi.us. 12:03.040 --> 12:04.040 Thank you. 12:04.040 --> 12:05.040 Thanks everyone.