Case 3:25-cv-06162-JSC Document 35 Filed 09/04/25 Page 11 of 34
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Kalshi is wrong. Kalshi’s contracts are not CEA compliant because Kalshi did not meet its
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obligations under the CEA and CFTC regulations with respect to the self-certification process.
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Specifically, Kalshi’s contracts facially involve sports gaming, prohibited by the CEA and CFTC
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regulations, and Kalshi’s self-certifications do not address compliance issues, let alone rebut the
regulatory presumption that its contracts are contrary to the public interest. See 17 C.F.R. §§ 40.11,
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40.2, 40.3. Kalshi, as a Designated Contract Market (“DCM”) and the regulator of that
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marketplace, is offering prohibited gaming contracts in all fifty states, including on Indian lands
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within the boundaries of each state.
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Class III gaming on Indian lands must be conducted in accordance with the IGRA and is
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regulated exclusively by Indian tribes and states and subject to federal regulatory oversight. 25
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U.S.C. §§ 2701–2721. IGRA comprehensively regulates the field of Indian gaming and assigns
specific regulatory roles for tribes, states, and federal agencies. See , e.g. , 25 U.S.C. § 2702. IGRA
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preempts the field of regulation of Indian gaming and conveys to the Tribes a right to enjoin
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unlawful class III gaming on their Indian lands. 25 U.S.C. § 2710(d)(7)(A)(ii). Because Kalshi is
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intentionally targeting the sports betting consumer and engaging in sports betting in a manner that
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allows persons and entities to engage in class III sports betting on Indian lands, Kalshi’s activities
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violate IGRA, the Tribal-State Compact entered into by the Picayune Rancheria of Chukchansi
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Indians (“Picayune”), the Secretarial Procedures issued to the Blue Lake Rancheria (“Blue Lake”)
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and the Chicken Ranch Rancheria of Me-Wuk Indians (“Chicken Ranch”), and the Tribal Gaming
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Ordinances enacted by the Plaintiff Tribes in accordance with IGRA to regulate class III gaming
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activity on their Indian lands.
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The Tribes, therefore, request that the court issue an order enjoining Kalshi from offering
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any future gaming contracts within the Plaintiff Tribes’ Indian lands. The Tribes also request that
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the court issue an order enjoining Kalshi from deploying false and misleading advertisements
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2 NOTICE OF MOTION AND MEMORANDUM OF POINTS AND AUTHORITIES [ Case No.: 25-cv-06162-JSC]
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