Case 3:25-cv-06162-JSC Document 35 Filed 09/04/25 Page 22 of 34
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846 (citing Time Warner , 497 F.3d at 158). On March 20, 2025, Kalshi advertised “Bet[ting] on
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March Madness in all 50 states,” which advertisement depicted a classroom with a computer and
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four phones displaying multiple basketball games, and asserted: “Really hope kids in high school
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still do this.” Kretz Decl. ¶ 31, Ex. 31. Considered in context, the text and images in Kalshi’s
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advertisement not only necessarily implies that betting on March Madness basketball games is
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legal in all fifty states, but implies that “kids in high school” can bet on March Madness basketball
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games. Kids in high school are typically under eighteen years old, and the plaintiff Tribes are
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unaware of any state or federal law that authorizes children under the age of eighteen to gamble
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on sports.
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Kalshi’s advertisements promoting “legal” sports betting in all fifty states are, therefore,
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either facially false or false by necessary implication in light of the configuration of text and images
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and the mode of presentation in which Kalshi’s advertisements are communicated to consumers.
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Even if the Court concludes that Kalshi’s advertisements are not literally false, these
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advertisements are still likely to mislead or confuse consumers, as social media users have
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expressed confusion and doubt regarding the legality of these contracts. See Kretz Decl. ¶¶ 7, Ex.
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6; 9-11, Ex. 8-11; 18-21, Ex. 18-21; 40, Ex. 41; 41, Ex. 42-44; 46, Ex. 62. Kalshi’s advertisements
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on its social media accounts use the terms “betting” and “trading” in close proximity to one
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another, and sometimes within the same advertisement. Kretz Decl. ¶ 47, Ex. 63. The concern and
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confusion of the public is evident in social media users’ comments on Kalshi’s on-line advertising:
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“Betting culture is crazzyyy”; “Didn’t Enron do the exact same thing?”; “I bet not traded”; “Enron
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is back baby!”; “Calling it a ‘trading app’ is crazy.”; and “1-800-GAMBLER”. Kretz Decl. ¶¶ 18,
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Ex. 18; 20-22, Ex. 20-22.
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In sum, Kalshi is aggressively promoting contracts that do not comply with the CEA and
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conflict with IGRA and state gambling laws by communicating to consumers that Kalshi’s
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contracts and the consumers’ conduct is legal when such conduct is unlawful and, thus, likely
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criminal. Kalshi’s advertisements are likely to deceive a substantial segment of its audience in a
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manner that is likely to influence the purchasing decision of consumers and gamblers, and divert
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13 NOTICE OF MOTION AND MEMORANDUM OF POINTS AND AUTHORITIES [ Case No.: 25-cv-06162-JSC]
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