2026 Membership Book FINAL

Case: 25-1922 Document: 83 Page: 33 Date Filed: 09/24/2025

Page 32

1 two subsidiary points, but footnote 10, in our brief, we

2 addressed their point that they can't take bets outside of New

3 Jersey. Our laws are limited to New Jersey because we can't

4 regulate outside of New Jersey. We're not saying you can only

5 accept bets in New Jersey. That's not what our statute means.

6 We've never taken that position. So that's --

7

JUDGE CHAGARES: Wait, your statute doesn't say you

8 have to physically be in New Jersey to make a bet?

9

MR. EHRLICH: No, no. For New Jersey residents, you

10 have to comply with our laws, but I think their point was where

11 our laws are restricting them to only accepting bets in New

12 Jersey, and that's not what it's doing. They if they can

13 accept bets outside of New Jersey, in compliance with other

14 state and federal law.

15

JUDGE PORTER: I thought they were saying, we can't

16 tell if some bettor is in New Jersey or not.

17

MR. EHRLICH: Well, maybe they're saying that, I

18 didn't take them to be saying that, but if they are, I mean,

19 there's ways to deal with that. There's geolocation

20 technology. There's a company called Sporttrade that does

21 exactly what Kalshi is doing in New Jersey, right now and has a

22 New Jersey gaming license, so there's ways to deal with those

23 sorts of things. It's certainly not an obstacle or an

24 impossibility when, as I said, federal law prohibits what

25 they're doing and state law prohibits, too.

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