Case 3:25-cv-06162-JSC Document 35 Filed 09/04/25 Page 26 of 34
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harm that cannot be fully compensated. Crucially, having demonstrated that Kalshi’s
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advertisements are facially false or false by necessary implication above, the Tribes are entitled to
a presumption of irreparable harm under the Lanham Act. 15 U.S.C. § 1116(a); see Time Warner ,
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497 F.3d at 153; Suzie’s Brewery , 519 F. Supp. 3d at 846.
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The Tribes have invested significant resources in establishing a strictly regulated Class III
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gaming market, and Kalshi’s false advertising interferes with the Tribes’ authority and ability to
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regulate this market. Ramos Decl. ¶¶ 33-41. By falsely and misleadingly representing their
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unregulated activities as lawful and likening them to sports betting, Kalshi confuses the public and
undermines the Tribes’ carefully developed and regulated Class III gaming market. See Kretz Decl.
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¶¶ 7, Ex. 6; 9, Ex. 8; 11, Ex. 11; Ramos Decl. ¶¶ 40, 41. The Tribes’ gaming authority is contingent
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on maintaining a clear distinction between legal and illegal operations. Kalshi’s advertisements
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erode this distinction, forcing the Tribes to compete with an unregulated entity, which harms their
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market positions and the integrity of their regulated businesses.
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c.
The Balance of the Equities Favors the Tribes
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In assessing whether to grant a request for injunctive relief, a court “must balance the
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competing claims of injury and must consider the effect on each party of the granting or
withholding of the requested relief.” Winter v. Nat. Res. Def. Council, Inc. , 555 U.S. 7, 24 (2008)
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(quoting Amoco Prod. Co. v. Vill. of Gambell, AK , 480 U.S. 531, 542 (1987)). The Winter factors
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may be evaluated on a sliding scale, such that preliminary relief may be issued when the moving
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party demonstrates “that serious questions going to the merits were raised and the balance of
hardships tips sharply in the plaintiff's favor.” Cmty. Legal Servs. in E. Palo Alto v. United States
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Dep’t of Health & Hum. Servs. , No. 25-CV-02847-AMO, 2025 WL 973318, at *3 (N.D. Cal. Apr.
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1, 2025), appeal dismissed, No. 25-2358, 2025 WL 1189827 (9th Cir. Apr. 18, 2025) (quoting All.
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for the Wild Rockies v. Cottrell , 632 F.3d 1127, 1134–35 (9th Cir. 2011)).
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Here, the balance of the equities tips sharply in favor of the Tribes. With respect to IGRA,
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if Kalshi is enjoined from offering its contracts on the Tribes’ Indian lands, Kalshi may lose profits
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17 NOTICE OF MOTION AND MEMORANDUM OF POINTS AND AUTHORITIES [ Case No.: 25-cv-06162-JSC]
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