Case 1:25-cv-01283-ABA Document 26 Filed 05/09/25 Page 15 of 36
letter stated that Kalshi’s gaming devices were “ indistinguishable from the act of placing a sports
wager ” as defined under Maryland law. Id. The Commission concluded that Kalshi was operating
in Maryland and was “offering and conducting … wagering on sporting events" without a sports
wagering license issued by the Commission. Id.
STANDARD OF REVIEW
A preliminary injunction is “‘an extraordinary remedy that may only be awarded upon a
clear showing that the plaintiff is entitled to s uch relief.’” Harrell v. University of Md. Sch. of
Pharmacy , No. MJM-24-104, 2024 WL 2155023, at *5 (D. Md. May 13, 2024) (quoting Winter
v. Natural Res. Def. Council, Inc. , 555 U.S. 7, 22 (2008)). The purpose of a preliminary injunction
is to “protect the status quo and to prevent irreparable harm during the pendency of a lawsuit [and]
ultimately to preserve the court’s ability to render a meaningful judgment on the merits.” Moore
v. Bishop , No. JKB-17-1919, 2018 WL 2165299, at *5 (D. Md. May 10, 2018), aff'd , No. 18-6663,
2019 WL 93269 (4th Cir. Jan. 3, 2019) (citation omitted). To obtain such relief, Plaintiffs must
(1) establish that they are likely to succeed on the merits, (2) that they are likely to suffer irreparable
harm in the absence of preliminary relief, (3) that the balance of equities tips in their favor, and (4)
that an injunction is in the public interest. Winter , 555 U.S. at 20, 22. Thus, Kalshi “must make a
‘clear showing’” of the requirements” to obtain preliminary injunctive rel ief. Harrell , 2024 WL
2155023, at *5 (quoting Low Tide Brewing, LLC v. Tideland Mgmt. LLC , No. 2:21-CV-0775-
DCN, 2021 WL 1381123, at *2 (D.S.C. Apr. 12, 2021))
ARGUMENT
I. K ALSHI ’ S I S U NLIKELY TO P REVAIL ON THE M ERITS B ECAUSE I TS G AMING D EVICES A RE N OT W ITHIN THE E XCLUSIVE J URISDICTION OF THE CFTC.
Kalshi’s gaming devices do not satisfy the legal prerequisites necessary to be within the
exclusive jurisdiction of the CFTC, and as such, Maryland is not preempted from exercising its
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