Case 2:25-cv-01541-JCM-DJA Document 7 Filed 08/19/25 Page 9 of 31
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contracts trading through Robinhood’s platform, all actual trades occur on Kalshi’s CFTC-regulated exchange. On March 4, 2025, the Nevada Gaming Control Board (“Board”) sent Kalshi a cease-and-desist letter threatening to prohibit Kalshi from facilitating any trading of sports- related event contracts in Nevada. KalshiEx LLC v. Hendrick , No. 2:25-cv-00575-APG-BNW, ECF No. 1-2, at 2 (D. Nev. filed Apr. 9, 2025). The Board asserted that Nevada state gaming laws governed these transactions. In response, Kalshi sought declaratory and injunctive relief from this Court, arguing that Nevada’s gaming laws, as applied to trading on a CFTC-designated exchange, are preempted by the Commodity Exchange Act’s (“CEA”) comprehensive federal framework for regulating commodity futures and swaps trading. Id. , ECF No. 1. The Court granted Kalshi’s motion for a preliminary injunction, holding that Kalshi demonstrated a likelihood of success on the merits, that it will likely suffer irreparable harm without relief, and that the balance of interests favors injunction. KalshiEx LLC v. Hendrick , No. 2:25-CV-00575-APG-BNW, 2025 WL 1073495, at *2-8 (D. Nev. Apr. 9, 2025) (hereinafter “ KalshiEx ”). Defendants are thus currently prohibited from enforcing Nevada gaming laws against Kalshi with respect to sports-related event contract transactions on its designated exchange. Robinhood maintains that offering Kalshi’s sports-related event contracts to its customers in Nevada would not violate any state laws. But in light of the cease-and-desist letter that Kalshi received, as of March 14, 2025, Robinhood has not allowed Nevada residents to enter positions for sports-related event contracts. On May 6, 2025, after this Court’s decision in KalshiEx , 2025 WL 1073495, Robinhood met with the Board and explained that it believed it should be able to offer sports-related event contracts trading through Kalshi’s exchange for as long as this Court’s order in KalshiEx remains in effect. At the conclusion of that meeting, Board employees indicated they did not expect to be able to agree to refrain from enforcement action against Robinhood, even while the KalshiEx order is in place. They stated that they would contact Robinhood if they ultimately reached a different conclusion, and to date, they have not done so.
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