Case: 25-7516, 01/23/2026, DktEntry: 33.1, Page 29 of 110
1-StateSER-10. But Kalshi does not possess a state gaming license from
Nevada or any other State. 1-ER-2.
Kalshi argues (Br. 19) that it functions differently from a traditional
sportsbook because it connects bettors and does not act as the “house.” But
many forms of gambling involve players betting directly with each other,
with the casino taking a cut of the wager . See Hughes Props. v. State , 100
Nev. 295, 297 (1984). Besides, Kalshi admits that an affiliate, Kalshi Trad-
ing, is the counterparty to (and thus the house for) a “significant” number
of bets on its DCM. Kalshi, Who Are You Trading With (Feb. 27, 2025),
perma.cc/8QQD-8QXR.
Kalshi’s business has grown exponentially during this lawsuit. By
mid-October 2025, Kalshi reached $50 billion in annualized trading volume,
“more than a thousandfold increase” from the previous year. Marina Tem-
kin, Source: Kalshi’s Valuation Jumps to $11B After Raising Massive $1B
Round , TechCrunch (Nov. 20, 2025), perma.cc/CUB3-9XHC. Over 90% of
those trades, representing 95% of Kalshi’s revenues, are on sports. Sam
Learner, Prediction Markets Barely Make Money; Sportsbooks Make Money ,
Fin. Times (Dec. 19, 2025), perma.cc/CB9N-SN6P.
Although Kalshi’s business is almost all sports betting, it is constantly
expanding into other events. For example, users could wager on the winner
of the Oscar for Best Actor, Kalshi, Oscar for Best Actor , perma.cc/TQ4N-
D7GX (visited Jan. 10, 2026); whether the fictional character Eric Cartman
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