Case 3:25-cv-06162-JSC Document 35 Filed 09/04/25 Page 30 of 34
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purpose . . . is in itself a declaration of public interest and policy which should be persuasive in
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inducing courts to give relief.”).
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Here, the CFTC regulations establish that contracts involving excluded commodities, such
as gaming, are presumed to be contrary to the public interest. 17 C.F.R. § 40.11; see also 7 U.S.C.
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§ 7a-2(c)(5)(C)(ii). The CFTC regulations also apply this presumption to “activity that is similar
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to” gaming, broadening the scope of the presumption that gaming activity is contrary to the public
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interest. 17 C.F.R. § 40.11(a)(2). As a result, the CFTC regulations prohibit a registered entity,
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such as Kalshi, from offering contracts that involve excluded commodities, such as gaming. 17
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C.F.R. § 40.11(a)(1). Kalshi has nevertheless proceeded to offer its gaming contracts and, in so
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doing, failed to rebut the presumption that its gaming contracts are contrary to the public interest
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through the self-certification process.
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In contrast, IGRA recognizes that “a principal goal of Federal Indian policy is to promote
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tribal economic development, tribal self-sufficiency, and strong tribal government . . . .” 25 U.S.C.
§ 2701(4); see 25 U.S.C. § 2702(1). IGRA comports with the public interest by establishing “a
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statutory basis for the regulation of gaming by an Indian tribe adequate to shield it from organized
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crime and other corrupting influences . . . and to assure that gaming is conducted fairly and honestly
by both the operator and players . . . .” 25 U.S.C. § 2702(2). 16
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Kalshi’s app-based platform combines one of the most addictive activities, sports betting,
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with one of the most addictive devices, smart phones, without any preventative measures for
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compulsive behavior or remedial treatment for addiction. The fact that the CEA and CFTC
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regulations lack such preventative and remedial measures demonstrates that commodities contracts
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are not supposed to constitute or mimic gaming activities. By extension, the lack of such
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preventative and remedial measures demonstrates that Kalshi is operating outside the scope of the
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CEA in offering gaming contracts on the Tribes’ Indian lands.
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21 NOTICE OF MOTION AND MEMORANDUM OF POINTS AND AUTHORITIES [ Case No.: 25-cv-06162-JSC] 16 State law, furthermore, specifically codifies that “[u]nregulated gambling enterprises are inimical to the public health, safety, welfare, and good order.” Cal. Bus. & Prof. Code § 19801 (d).
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