Case 2:25-cv-00575-APG-BNW Document 237 Filed 11/24/25 Page 25 of 29
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Kalshi’s concerns are essentially that it will not be able to profit from the trades, and that it suffers some reputational harm if it cannot offer those contracts to Nevada residents or must close out contracts involving Nevada residents. Kalshi also asserts that it risks its DCM designation if it does not offer its products nationwide. Kalshi’s harms are largely monetary. Kalshi may not be able to recover damages from the defendants if it turns out that it can offer these contracts without violating Nevada law, which is a factor to consider in balancing the hardships. But Kalshi’s monetary harm is weighed against the State of Nevada’s financial interests in tax revenues and Kalshi’s competitors’ 11 financial interests in fair competition. Kalshi’s monetary harm can be mitigated through geofencing, which regulated entities in this jurisdiction employ. Although Kalshi contends that it risks losing its DCM designation if it geofences, there is no evidence before me that the CFTC would take adverse action against Kalshi for complying with court orders and state law while the various lawsuits play out. To the contrary, it appears the CFTC would not act against registered entities in these circumstances. For several months after the Board announced that it sent Kalshi a cease-and-desist letter, Robinhood did not offer its Nevada customers the option of trading on Kalshi’s exchange. See Robinhood , ECF No. 8 at 3-4. There is no evidence that the CFTC threatened Robinhood’s status as a registered entity for doing so. And recently, Crypto reached an agreement with the Board while the appeal in its case plays out. See Crypto , ECF No. 110. Although it is not clear from the record what that agreement is, there is no evidence that the CFTC has acted or threatened to act against Crypto for satisfying the Nevada regulators while that case is on appeal. Additionally, I find it difficult to credit Kalshi’s fear given its apparent willingness to risk its
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11 This includes Nevada-licensed entities and Crypto.
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