Legal Notes: Judge blocks amicus brief filing bid in state sports betting case

A Tennessee federal judge has ruled in favor of prediction market Kalshi related to its suit against state gambling regulators and the opposition it faced from Native American tribal groups.

Specifically, and according to online legal industry publication law360.com, U.S. District Judge Aleta A. Trauger earlier this week denied without explanation a Jan. 23 bid to file an amicus brief lodged by the Indian Gaming Association, the National Congress of American Indians, the Indian gaming associations of four states and 21 federally recognized tribes.

The Native American Groups, via their now-denied brief, support the Tennessee Sports Wagering Council's attempt to stop Kalshi from offering sports events contracts in Tennessee.

The council, which regulates online sports wagering and fantasy sports in the state, has claimed Kalshi's contracts are the equivalent of sports wagering because they provide consumers the option to "purchase contracts corresponding to one of two outcomes of an event." Such sports events contracts offered via Kalshi's exchange, the council argues, are not compliant with the Tennessee Sports Gaming Act

Tribal groups have weighed in on the case because its outcome, they contend, could negatively impact their sovereign rights related to gambling on Native American lands.

Kalshi's regulated exchange and prediction market is primarily used for sports betting. However, it also allows users to trade so-called events contracts regarding the likely outcomes of real-world happenings such as, for example, political races and the dollar value of damages caused by major weather disasters.

Kalshi, which is based in New York, sued the Tennessee Sports Wagering Council on Jan. 9, when the latter issued a cease-and-desist letter in which it threatened criminal and civil penalties for Kalshi's allegedly offering illegal sports event contracts.

On Jan. 12 and as law360.com reports, Trauger granted Kalshi's request for a temporary restraining order, ruling that the council could not take regulatory action against Kalshi pending a hearing for the company's filed preliminary injunction motion.

Kalshi has argued that the Tennessee Sports Wagering Council cannot legally prohibit the company's trading, as the federal Commodity Futures Trading Commission authorizes such contracts and has full jurisdiction over them.

The tribal amici in the Tennessee case are represented by Stephen Zralek and Justin Adams of Spencer Fane LLP, Joseph Webster, Elizabeth Bower and Jens Camp of Hobbs Straus Dean & Walker LLP, Bryan Newland of Powers Pyles Sutter and Verville PC, Michael Hoenig of the Yuhaaviatam of San Manuel Nation and Scott Crowell of Crowell Law Office, Tribal Advocacy Group PLLC.

Britt Latham, Robert Cooper and Courtney Hunter of Bass Berry & Sims PLC and Neal Katyal, Joshua Sterling, William Havemann, Grant Mainland, Andrew Porter and Nicole Valente of Milbank LLP represent Kalshi.

The Tennessee Sports Wagering Council is represented by Michael Wennerlund, Jonathan Shirley and James Urban of the Tennessee Attorney General's Office.

TBF awards $4 million in grants

The Tennessee Bar Foundation has awarded $4 million in grants to legal organizations across the state.

The grants are distributed through the foundation's Interest on Lawyers' Trust Accounts (IOLTA) program in order to provide support to organizations that offer civil legal services and to aid to those who need financial assistance for such services. The grants also fund programs that "improve the administration of justice," a press release from the foundation said.

This year's round of awards are the largest in the history of the foundation's IOLTA program, which has awarded more than $34 million in grants since its inception 38 years ago. This year's funds were allocated toward 41 different programs, reaching residents in all 95 Tennessee counties, the release notes.

Sixteen of the grants — worth nearly a collective $830,000 — went to organizations in Middle Tennessee. Along with groups working in East and West Tennessee, eight statewide and multi-regional organizations were also beneficiaries of this year's grant cycle.

"For decades, IOLTA has been a cornerstone of support for those working to close the justice gap," said John Murphy, executive director of the Tennessee Bar Foundation.

"From Tennessee's rural towns to our urban centers, we know that legal support changes lives. IOLTA resources strengthen the capacity of our partners to meet community needs, ensuring that thousands of people who would otherwise face legal challenges alone receive support they need."

A full list of this year's grant recipients is available on the Tennessee Bar Foundation website.

Burr & Forman adds associate for financial services work

Law Firm Burr & Forman has welcomed a new associate to its Nashville office.

Ian Joseph has joined the firm in its financial services litigation group where he represents financial institutions on a variety of litigation, Burr & Forman announced in a press release.

Joseph will focus on mortgage lenders, loan servicers and other service provers. His work will include counseling clients on consumer protection disputes and business litigation involving allegations of fraud and breach of contract. His practice will include representing clients in state and federal courts.

Jospeh obtained his law degree from Washington & Lee University and his bachelor's degree from the University of Georgia. During law school, he worked as a judicial intern for Judge Claude Worrell in the 16th Judicial Circuit of Virginia. Prior to law school, he worked as a paralegal.