Case 1:25-cv-14723 Document 10-1 Filed 08/19/25 Page 30 of 34 PageID: 102
absent injunctive relief.” KalshiEx , 2025 WL 1218313, at *6 (quoting Ramsay v. Nat. Bd. of
Med. Exam’rs , 968 F.3d 251, 262 (3d Cir. 2020)) (alteration in original). “A credible threat of
imminent prosecution for a state violation that conflicts with federal law can establish a
likelihood of irreparable harm.” KalshiEx (D. Nev.) , 2025 WL 1073495, at *7; see also Morales
v. Trans World Airlines, Inc. , 504 U.S. 374, 381 (1992) (“When enforcement actions are
imminent . . . there is no adequate remedy at law.”). Loss of business and goodwill can also
inflict irreparable injury. KalshiEx , 2025 WL 1218313, at *7 (quoting Marine Elec. Sys., Inc. v.
MES Financing, LLC , 644 F. Supp 3d 84, 95 (D.N.J. 2022)); see also Pappan Enters., Inc. v.
Hardee’s Food Sys., Inc. , 143 F.3d 800, 805 (3d Cir. 1998) (“Grounds for irreparable injury
include loss of control of reputation, loss of trade, and loss of goodwill.”). These factors are
each just as applicable to Robinhood as they were to Kalshi.
Robinhood is suffering irreparable harm as a result of the Division’s refusal to
acknowledge that the Court’s KalshiEx Order is equally applicable to Robinhood’s facilitation of
sports-related event contracts offered through the Kalshi exchange. Because Robinhood has
restored access to sports-related event contract trading for its New Jersey customers, Mackenzie
Decl. ¶ 11, and its New Jersey customers have opened positions in sports-related event contracts,
id. ¶ 12, Robinhood faces the imminent threat of potential civil liability and criminal prosecution.
The sanctions for violation of the New Jersey statute include civil and criminal penalties,
including “a fine of not more than $100,000 and any other appropriate disposition,” including
imprisonment for corporate representatives. N.J.S.A. §§ 5:12A-11(c), 2C:43-2. The threat of
prosecution, articulated in the Division’s cease-and-desist letter, is actual and imminent,
Mackenzie Decl. ¶ 13, especially because the Division has refused to discuss with Robinhood a
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