Case 2:25-cv-01541-JCM-DJA Document 7 Filed 08/19/25 Page 16 of 31
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This means that while Robinhood customers are placing orders for event contract trades in their Robinhood accounts, the trades themselves are taking place on Kalshi’s CFTC-designated exchange. Id. ¶ 5. This is no different from when a Kalshi customer places an order for an event contract trade through her Kalshi account, which is then executed on Kalshi’s exchange. Here, the user interface is Robinhood’s instead of Kalshi’s, which is convenient for Robinhood customers but does not affect the way in which trades are executed on Kalshi’s exchange or regulated by the CFTC; it merely adds additional CFTC regulation of Robinhood’s activities as an FCM. Id. D. The Letters from the Board. On March 4, 2025, the Board sent Kalshi a cease-and-desist letter threatening to bring a legal action to prohibit Kalshi from any trading of sports-related event contracts in Nevada. KalshiEx , No. 2:25-CV-00575, ECF No. 1-2, at 1-2. The Board asserted that Kalshi was “operating as an unlicensed sports pool” in violation of Nev. Rev. Stat. §§ 463.160(1)(a) and 473.245(2). Id. It further asserted that Kalshi was violating Nev. Rev. Stat. § 465.086 (prohibiting receipt of compensation for accepting bets or wagers upon the result of certain events without required licenses) and Nev. Rev. Stat. § 465.092 (prohibiting receipt of a wager from another person who is physically present within Nevada). Id. The Board demanded that Kalshi “immediately cease and desist from offering any event-based contracts in Nevada.” Id. The Board reserved “all rights to pursue criminal and civil actions” if Kalshi failed to comply with the cease-and-desist letter. Id. at 2. Upon receiving the cease-and-desist letter, Kalshi, arguing that Nevada law is preempted by the CEA, sought declaratory and injunctive relief from this Court. KalshiEx , No. 2:25-CV- 00575, 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 , 2025 WL 1073495, at *2-8.
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