Case: 25-7516, 01/23/2026, DktEntry: 33.1, Page 83 of 110
on events other than organized sports contests, the sportsbook must prove
that the event is “effectively supervised” and has “integrity safeguards.” Id.
at 22.1201(2)(c). Recent scandals in professional baseball and basketball
show the importance of those safeguards. 1-ER-21 n.7. Kalshi offers sports
betting without those safeguards—for which it has drawn criticism from
sports leagues. See Kendall Baker, NCAA President Charlie Baker on
Sports Betting , Yahoo! Sports (Dec. 11, 2025), perma.cc/DDS6-XDDF; CFTC
Reauthorization: Stakeholder Perspectives Before the H. Comm. on Agric. ,
119th Cong. (2025) (statement of Jeff Miller, NFL), perma.cc/Z5X3-L9WR.
Kalshi notes (Br. 67) that the CFTC has regulations that protect
against market manipulation. But the CFTC is not a gaming regulator, and
the CFTC generally leaves DCMs to self-regulate. The CEO of Coinbase
exposed these vulnerabilities when, at the end of a recent earnings call, he
deliberately spoke five seemingly random words specifically to change the
result of a Kalshi event contract on what he would say during the call.
Emily Nicolle & Justina Lee, Coinbase CEO Stunt Exposes Prediction Mar-
ket Vulnerability , Bloomberg (Oct. 31, 2025), perma.cc/9S4K-Q2K8. Nevada
law does not allow wagers on these types of unregulated “events” precisely
because of the risk of manipulation and the threat to public confidence.
Harm to the public. Allowing Kalshi to continue operating would
harm some of Nevada’s most vulnerable residents. Nevada law prohibits
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