Case: 25-7516, 01/23/2026, DktEntry: 33.1, Page 30 of 110
would say “mom” in an upcoming episode of South Park, Kalshi, What Will
Eric Cartman Say During the South Park Season 27 Episode 3 , perma.cc/
K4PPM-JHDE (visited Aug. 22, 2025); and what flavors vape company Juul
would launch in 2026, Kalshi, What Flavors Will JUUL Relaunch , perma.cc/
C2YN-2VMY (visited Jan 18, 2026). According to its CEO, Kalshi’s “long-
term vision” is to allow betting on “any difference in opinion.” Evan Gach,
Finance Bro Thinks It Would Be Cool to Turn Your Entire Life Into the Stock
Market , Kotaku (Dec. 3, 2025), perma.cc/VKA7-EPJE (internal quotation
marks omitted).
C. Procedural History In March 2025, the Board sent Kalshi a cease-and-desist letter, ex-
plaining that Kalshi is violating Nevada law by offering unlicensed gam-
bling on sports and elections. 2-ER-112-13 (¶ 55). In response, Kalshi filed
this lawsuit, arguing that because it registered its DCM with the CFTC, the
CFTC has “exclusive jurisdiction” over any product Kalshi has listed or ever
will list for trading on its DCM. 2-ER-114-15 (¶¶ 64-70).
In an expedited proceeding, the district court granted Kalshi a prelim-
inary injunction, holding that the CEA likely preempts Nevada’s gaming
laws. See 2-ER-65-81. The court did not address the threshold question
whether Kalshi’s contracts are “swaps” or other commodity derivatives sub-
ject to the CEA. 2-ER-74-77. And the court cautioned Kalshi that it was
“proceeding at its own risk and creating its own harms.” 2-ER-80. Despite
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