Case 1:25-cv-01283-ABA Document 26 Filed 05/09/25 Page 8 of 36
the hardships in this matter favors the protections of Maryland’s citizens and businesses against
unlicensed sports wagering. As such, Kalshi’s Motion should be denied.
BACKGROUND
I.
K ALSHI ’ S G AMING D EVICES A RE S PORTS W AGERING .
Kalshi is a financial services company that operates a derivatives exchange and prediction
market. ECF 1 at ¶15. Its exchange market has been approved as a designated contract market
(“DCM”) 2 by the CTFC. Id. On its DCM, Kalshi offers “event contracts” for public trading Id.
A subset of Kalshi’s event contracts are gaming devices that provide for the placement, purchase,
and sale of sports wagers on Kalshi’s exchange. Id . at ¶ 48. For all event contracts, Kalshi collects
a transaction fee based on the value of the contract when it is traded. Exhibit 1, Kalshi Fee
Schedule.
As a subset of its event contracts, Kalshi offers gaming devices that permit wagers on the
outcome of sporting events to be offered and traded on its market. ECF 1 at ¶¶ 48, 49. Kalshi has
marketed its gaming devices as “Betting on Kalshi, the first app for legal sports betting in all 50
states,” “Sports Betting Legal in all 50 States,” “Kalshi: The First Nationwide Legal Sports Betting
Platform.” Exhibit 2, Dustin Gouker, Ten Times Kalshi Said People Could Bet On Things (April
3, 2025) at 3, 6, 8; 3 Daniel Wallach, Kalshi’s Nevada Court Win May Be Short -Lived Due To
Federal Wire Act Ban On Sports Betting , Forbes (Apr. 15, 2025), https://perma.cc/W2J7-4JVF
(captured Apr. 22, 2025). As with its other event contracts, these gaming devices present a binary
2 To offer derivative contracts for public trading, an entity must seek and receive the CTFC’s designation as a contract market. ECF 1 at ¶ 38 (citing 7 U.S.C. §§ 2(e), 7(a); 17 C.F.R. § 38.3(a)). 3 Kalshi highlights that its gaming devices permit sports wagering in Texas and California. Exhibit 2 at 3. Both states, however, currently prohibit sports wagering. Tex. Penal Code Ann. § 47.01- 14; Cal. Penal Code §§ 330-337z.
2
Made with FlippingBook - Online catalogs