Case 1:25-cv-14723 Document 10-1 Filed 08/19/25 Page 18 of 34 PageID: 90
Robinhood, while maintaining that its conduct did not violate any state laws, nevertheless
paused allowing its New Jersey customers to enter new positions for sports-related event
contracts by implementing a “position closing only” restriction on existing and new Robinhood
accounts with a current New Jersey address while Kalshi’s lawsuit proceeded in this Court.
Mackenzie Decl. ¶ 9. Following the Court’s decision in KalshiEx , No. 25-cv-2152, 2025
WL 1218313, to mitigate the harm that Robinhood has suffered by complying with the
Division’s demands, Robinhood contacted the Division in May and explained that it believed it
should be able to reactivate sports-related event contracts trading through Kalshi’s exchange for
as long as this Court’s order in KalshiEx remains in effect. Declaration of Kevin J. Orsini in
Support of Plaintiff Robinhood’s Motion for a Temporary Restraining Order and Preliminary
Injunction (“Orsini Decl.”) ¶ 3. Division officials informed Robinhood that they could not agree
to refrain from enforcement action even while this Court’s order was in place concerning Kalshi.
Id. Robinhood requested a meeting with senior Division officials to discuss the issue further. Id.
¶ 4. After several follow-ups by Robinhood, the Division has still not responded to Robinhood’s
request for a meeting. Id.
ARGUMENT
“To obtain a preliminary injunction, the movant must demonstrate both a likelihood of
success on the merits and that it will more likely than not suffer irreparable harm without relief.”
KalshiEx , 2025 WL 1218313, at *3 (citing Mallet & Co. v. Lacayo , 16 F.4th 364, 380 (3d Cir.
2021)). If these two factors are met, the Court then considers “whether granting the requested
relief will result in an even greater harm to the nonmovant or other interested party and whether
the public interest favors relief—and balances the four factors together.” Id. ; see also Winter v.
Nat. Res. Def. Council, Inc. , 555 U.S. 7, 20 (2008). “When the nonmovant is the government,
the third and fourth factors merge.” KalshiEx , 2025 WL 1218313, at *3 (citing Shelley v.
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