Case 2:25-cv-00575-APG-BNW Document 237 Filed 11/24/25 Page 28 of 29
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exchanges to offer sports gambling nationwide for anyone over the age of 18 without complying with Nevada’s gaming regulatory regime or paying taxes in this state. If Kalshi’s view is adopted, there is a not-insignificant chance that the regulated entities in this state will abandon their current model and become DCMs, unleashing even more unregulated gambling and devastating the Nevada economy and related tax revenues. Indeed, recently, two of the “largest sports betting operators in the U.S., FanDuel and DraftKings, agreed . . . to not seek licensing in Nevada in order to focus efforts on launching prediction markets in other states.” DraftKings, FanDuel Agree to Abandon Nevada in Favor of Prediction Markets , The Nevada Independent, Nov. 12, 2025, available at https://thenevadaindependent.com/article/draftkings-fanduel-agree- to-abandon-nevada-in-favor-of-prediction-markets. 14 The traditional police powers of the states, which are considerable and longstanding, particularly in this state which has led the nation in gaming regulation and enforcement for decades, weigh heavily against Kalshi’s harms. As I mentioned in my Crypto order, had Congress intended to upset the balance between state and federal gaming regulation and turn CFTC-designated markets into nationwide casinos for anyone over the age of 18 with no comparable federal regulator, it surely would have made that intent more explicit. I therefore find that the balance of hardships does not tip sharply in Kalshi’s favor. Rather, the balance of hardships and the public interest weigh in favor of the defendants and of dissolving the preliminary injunction. VI. CONCLUSION
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14 As mentioned previously, I can consider hearsay in deciding whether to issue a preliminary injunction. Additionally, the Board confirmed at the November 14, 2025 hearing that FanDuel and DraftKings have voluntarily abandoned their Nevada licensing applications. ECF No. 219 at 89.
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