Case: 25-7516, 01/23/2026, DktEntry: 33.1, Page 82 of 110
Harm to Nevada’s gaming industry. Nevada has a sovereign in-
terest in ensuring a fair and competitive gaming industry. 1-ER-27-29 (cit-
ing NRS § 463.0129(b)-(c)); see Sports Form, Inc. v. Leroy’s Horse & Sports
Place , 108 Nev. 37, 41 (1992). Allowing Kalshi to continue operating with-
out complying with Nevada gaming law causes irreparable injury to Ne-
vada’s gaming industry. It gives Kalshi a massive and unfair competitive
advantage over its competitors: Kalshi does not need to spend the money
its competitors need to spend on licensing fees, taxes, and compliance, and
its products are not subject to the same requirements as its competitors.
See 1-ER-28-29.
The harm increases significantly the longer Kalshi operates. Kalshi’s
profit from unlicensed gaming incentivizes others to shift sports betting to
DCMs rather than becoming (or remaining) licensed by the State. That al-
ready has started to happen: DraftKings and FanDuel decided to forgo li-
censing in Nevada so that they can enter the prediction-markets business
in other States. 1-ER-29. Other sportsbooks could follow suit, “unleashing
even more unregulated gambling and devastating the Nevada economy and
related tax revenues.” 1-ER-28-29.
Harm to the integrity of gaming. Nevada law permits wagers only
when there are sufficient safeguards to ensure that wagering is fair. For
example, licensed sportsbooks must follow strict protocols to ensure that
insiders do not bet on games. Nev. Gaming Reg. 22.1205. To offer wagers
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