Case: 25-7516, 01/23/2026, DktEntry: 33.1, Page 85 of 110
gaming taxes, which fund core public services. NRA, Fact Book 65. Unli-
censed gaming threatens that revenue, by evading taxes and diverting busi-
ness from licensed sportsbooks that pay taxes. See Sacco v. State , 105 Nev.
844, 847 (1989).
Kalshi suggests (Br. 66-67) that State Defendants ultimately could re-
coup unpaid taxes. But only licensed entities pay taxes, and licensing is not
retroactive. NRS § 463.370. Although a new law permits disgorgement of
“profits, gain, gross receipts, or other benefit” from a state-law violation, it
requires a criminal conviction. Id. § 463.360(3), as amended by S.B. 256
(2025). So unless Kalshi is willing to admit that it should be held criminally
liable, it cannot say Nevada will be made whole.
Kalshi asserts (Br. 66) that State Defendants are not harmed because
they did not immediately appeal the initial preliminary-injunction decision
and agreed to not enforce against Crypto.com pending appeal. But State
Defendants consistently have sought to resolve this litigation as quickly as
possible because of the harms from Kalshi’s operations. When Kalshi
“greatly expanded” its operations, State Defendants sought dissolution of
the preliminary injunction. 1-ER-27. A delay in seeking “judicial protec-
tion” does not negate an irreparable injury, especially “in the context of on-
going, worsening injuries.” Arc of Cal. v. Douglas , 757 F.3d 975, 990-91 (9th
Cir. 2014). Further, State Defendants only agreed not to enforce against
Crypto.com (a much smaller competitor) pending appeal because it ceased
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