Case 2:25-cv-00575-APG-BNW Document 237 Filed 11/24/25 Page 1 of 29
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UNITED STATES DISTRICT COURT DISTRICT OF NEVADA
KALSHIEX, LLC, Plaintiff v. KIRK D. HENDRICK, et al., Defendants
Case No.: 2:25-cv-00575-APG-BNW Order Granting Motion to Dissolve Preliminary Injunction [ECF No. 142]
KalshiEX, LLC is registered with the Commodity Futures Trading Commission (CFTC) as a designated contract market (DCM). Kalshi has established a market for sports betting. Kalshi advertised that it is the “first app for legal sports betting in all 50 states.” But Kalshi is not licensed to conduct gaming in Nevada or any other state. So the Nevada gaming regulators sent it a cease-and-desist letter. Kalshi now contends that it is not taking sports bets and, even if it were, no state can regulate it because it is a DCM under the CFTC’s exclusive jurisdiction. Kalshi relies on a strained reading of the already convoluted Commodities Exchange Act (CEA) in an attempt to evade state regulation. Kalshi’s interpretation would require all sports betting across the country to come within the jurisdiction of the CFTC rather than the states and Indian tribes. That interpretation upsets decades of federalism regarding gaming regulation, is contrary to Congress’ intent behind the CEA, and cannot be sustained. I. PROCEDURAL POSTURE In January 2025, Kalshi started listing sports-related event contracts on its exchange. The Nevada Gaming Control Board sent Kalshi a cease-and-desist letter stating that Kalshi was operating an unlicensed sports pool in violation of Nevada gaming law. Kalshi filed this lawsuit against the Board and its members in their official capacities, the Nevada Gaming Commission
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