Case 3:25-cv-06162-JSC Document 35 Filed 09/04/25 Page 27 of 34
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and incur costs. But injury to the Tribes’ sovereignty and their right to govern themselves far
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outweighs those costs.
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Additionally, the potential economic harm to Kalshi arising from injunctive relief granted
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to the Tribes is far less than if the CFTC initiated regulatory review under 17 C.F.R. § 40.11(c),
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during which the CFTC “shall request that a registered entity suspend the listing or trading of any
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agreement, contract, transaction, or swap based on an excluded commodity . . . .” 17 C.F.R. §
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40.11(c)(1). The Tribes seek only to enjoin Kalshi from offering its contracts involving sports
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within the boundaries of the Tribes’ respective Indian lands prospectively. CFTC review, on the
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other hand, would require Kalshi to cease offering all contracts under review. Since Kalshi has
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failed to avail itself of CFTC review pursuant to 17 C.F.R. § 40.3, and since the CFTC, under the
current administration, has demonstrated an inability 13 or unwillingness 14 to review and regulate
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Kalshi’s unlawful gaming contracts, the only remedy available to the Tribes is injunctive relief
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granted by this Court, pursuant to the statutory remedy prescribed by IGRA.
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In contrast to the minor harm Kalshi may suffer upon issuance of a preliminary injunction,
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the Tribes will suffer ongoing interference of core governmental functions. Shown above, IGRA
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establishes a comprehensive framework for regulating gaming activity on Indian lands, assigning
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specific roles to the federal government (the Department of the Interior and the National Indian
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Gaming Commission), state governments through the compacting process, and tribal governments
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through the compacting process and the enactment of tribal gaming ordinances. Kalshi’s activity
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not only interferes with the Tribes’ right to regulate gaming on their Indian lands, but also
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interferes with the rights and obligations of the State of California, as a party to the Picayune
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Rancheria of Chukchansi Indian’s Compact, for the regulation of class III gaming, and interferes
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with the federal government’s broad regulatory oversight of class III gaming.
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18 NOTICE OF MOTION AND MEMORANDUM OF POINTS AND AUTHORITIES [ Case No.: 25-cv-06162-JSC] 14 Statement of Commissioner Brian D. Quintenz on ErisX RSBIX NFL Contracts and Certain Event Contracts, Any Given Sunday (March 25, 2021), Pls.’ Req. for Judicial Notice ¶ 6, Ex. 6 (expressing unwillingness to evaluate whether commodities contracts are in the public interest: “[T]he Commission is not a moral arbiter. It is not an expert in determining what is in the public’s interest, and it is certainly not equipped to tell the public what its interest should be.”). 13 89 FR 48968-01, *48969 (“From a resource allocation perspective . . . a single § 40.11(c) review is resource-intensive and consumes hundreds of hours of staff time.”)
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