Case 1:25-cv-01283-ABA Document 26 Filed 05/09/25 Page 19 of 36
Appellee’s Br. at 45, KalshiEX LLC , 2024 WL 4802698. Kalshi’s concession is consistent with
the plain meaning of the statute. See Wisconsin Cent. Ltd v. United States , 585 U.S. 274, 277
(2018) (“As usual, our job is to interpret the words consistent with their ordinary meaning”)
(quoting Perrin v. United States , 444 U.S. 37, 42 (1979)). In particular, t he subject of Kalshi’s
gaming devices, the outcome of a sporting event, is not “ an event or contingency associated with
a potential financial, economic, or commercial consequence. ” 7 U.S.C. § 1a(47)(A)(ii).
Kalshi’s gaming devices do not involve the sporting event itself , but rather the outcome of
the event, i.e. , which team will win the game. Kalshi and the District of New Jersey miss this
important distinction; Kalshi argues and the District of New Jersey acknowledged that some
sporting events have economic impact. See KalshiEX, LLC v. Flaherty, et al., No. 25 – cv – 02152 –
ESK – MJS, 2025 WL 1218313, at *6 (D. N. J. April 28, 2025). Being outcome-focused, however,
Kalshi’s gaming devices are simply a speculative wager on who will win a particular sporting
event. They are not dependent upon, or otherwise related to, any potential economic impact of the
underlying sporting event taking place, let alone any legitimate hedging activity. The only people
who benefit economically from the outcome of the sporting event are the participants themselves.
As such, whether one competitor wins or loses does not change the economic, financial, or
commercial outcome for anyone but the competitors themselves.
R oughly a month ago, Kalshi’s leading gaming device concerned the “Masters To urnament
Winner.” Sports , KALSHI, https://perma.cc/9SNV-3WUQ (captured Apr. 12, 2025). While the
T ournament itself does generate significant revenue, Kalshi’s gaming device was concerned only
with who won the Tournament, not with the Tournament itself. No matter the T ournament’s
winner, the television networks, on-site vendors, etc. would still profit from the Tournament itself.
Regardless of whether Rory McIlory or Justin Rose won their epic, sudden-death playoff, the
13
Made with FlippingBook - Online catalogs