Case 2:25-cv-00575-APG-BNW Document 237 Filed 11/24/25 Page 26 of 29
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DCM status by listing contracts involving gaming (however one defines it) in the face of the CFTC’s regulation that prohibits DCMs from doing so. See 17 C.F.R. § 40.11(a). The CFTC has recently directed DCMs like Kalshi and FCMs like Robinhood to warn customers about the various lawsuits and risks they pose. CFTC Letter No. 25-36 (Sept. 30, 2025). As a result, Kalshi’s customers are on notice that offering gaming contracts implicates the CFTC’s regulation, that the legal landscape under which Kalshi is operating could change, and that customers’ contracts could be disrupted. If customers continue trading in Kalshi’s products, they, like Kalshi, are proceeding at their own risk. Kalshi could have proceeded cautiously until this and other lawsuits played out, but instead it greatly expanded its offerings, so it has to some extent created or amplified its own harm. Balanced against Kalshi’s harms are substantial irreparable harms to the Board, the State of Nevada, the gaming industry in this state, and the public interest. First, the Nevada Legislature made findings, and it is self-evident to anyone who lives in Nevada, that the “gaming industry is vitally important to the economy of the State and the general welfare of the inhabitants.” Nev. Rev. Stat. (NRS) § 463.0129(a). The Nevada Legislature also found that a “comprehensive regulatory structure, coupled with strict licensing standards, will ensure the protection of consumers, including minors” and problem gamblers. NRS § 463.745. The Nevada Legislature also found that the success of legal gaming is dependent on public confidence and trust, and that public trust can be maintained only through strict regulation of those involved in the gaming industry in this state. NRS §§ 463.0129(b), (c). The defendants thus have strong interests in regulating gaming in Nevada. Indeed, they are statutorily charged with doing so under Nevada law. The defendants and the public have an interest in prohibiting gaming in Nevada that is not subject to the same rigorous regulations and
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