Case 2:25-cv-01541-JCM-DJA Document 7 Filed 08/19/25 Page 28 of 31
II. ROBINHOOD WILL SUFFER IRREPARABLE HARM ABSENT IMMEDIATE RELIEF. A plaintiff must show that it is “likely to suffer irreparable harm in the absence of preliminary relief.” Winter v. Nat. Res. Def. Council , 555 U.S. 7, 20 (2008). “A credible threat of imminent prosecution for a state violation that conflicts with federal law can establish a likelihood of irreparable harm.” KalshiEx , 2025 WL 1073495, at *7; see also Morales v. Trans World Airlines, Inc. , 504 U.S. 374, 381 (1992) (“When enforcement actions are imminent . . . there is no adequate remedy at law.”). Loss of business and goodwill can also inflict irreparable injury. Stuhlbarg Int’l Sales Co. , 240 F.3d at 841; see also Disney Enters., Inc. v. VidAngel, Inc. , 869 F.3d 848, 866 (9th Cir. 2017) (loss of goodwill “cannot readily be remedied with damages”). These factors are each just as applicable to Robinhood as they were to Kalshi. Robinhood is suffering irreparable harm as a result of the Board’s refusal to acknowledge that the Court’s KalshiEx Order is equally applicable to Robinhood’s facilitation of sports-related event contracts offered through the Kalshi exchange. Because Robinhood has granted access to sports-related event contract trading for its Nevada customers, Mackenzie Decl. ¶ 12, and its Nevada customers have opened positions in sports-related event contracts, id. ¶ 13, Robinhood faces the imminent threat of potential civil liability and criminal prosecution. The sanctions for violation of Nev. Rev. Stat. § 463.160 include civil and criminal penalties, including a fine “of not more than $50,000” and “imprisonment . . . for a minimum term of not less than 1 year and a maximum term of not more than 10 years.” Nev. Rev. Stat. § 463.360(3). The threat of prosecution, articulated in the Board’s letter, is actual and imminent. Mackenzie Decl. ¶ 14. A credible threat of prosecution under a preempted state statute causes irreparable harm. See Morales , 504 U.S. at 381. Further, the harm to Robinhood’s reputation caused by the threat, the uncertainty surrounding the status of sports-related event contract trading in Nevada, and potential enforcement proceedings by the Board is also irreparable, because it cannot be easily or quickly repaired. KalshiEx , 2025 WL 1073495, at *7-8; see also Life Alert Emergency Response, Inc. v.
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