Case 2:25-cv-00575-APG-BNW Document 57 Filed 05/14/25 Page 6 of 25
substantive intervention, at one or more of the subsequent rounds of briefing in this matter, would
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be helpful to the Court for the final resolution of the important issues presented in this litigation.
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III.
ARGUMENT
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A. The Consequences from this Litigation for the NRA’s Members Are Seismic.
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As a result of the Court’s preliminary injunction order, today a Nevada citizen can open a
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Kalshi account and place $100 on the Vegas Golden Knights to win Game 5 of the Playoff Series
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against the Edmonton Oilers, returning a $180 prize if the Golden Knights prevail. The same
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Nevada citizen can go to a licensed and regulated sportsbook in Nevada and place $100 on the
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Vegas Golden Knights, returning the same prize of $180. 1 And while Nevada receives tax revenue
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in the latter scenario, it receives nothing from the wager placed with Kalshi. There is no question
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that the event contracts offered by Kalshi are functionally identical to the sports bets offered by
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the members of the NRA. Any argument to the contrary is mere sophistry. As the CEO of
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Sporttrade, another sports prediction market platform operating with state gaming licenses that
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has sought approval for event contracts from the CFTC remarked: “You’re not going to hear me
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say this isn’t sports betting . . . That’s a ridiculous comment.” Dan Bernstein, Sporttrade seeks
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CFTC Green Light t o Avoid ‘Irreparable Harm , ’
SPORTICO (Apr. 30, 2025),
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https://tinyurl.com/3eyurfhc.
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Kalshi has repeatedly advertised itself on social media as offering “sports betting.” Sample
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tags include: “The First Nationwide Legal Sports Betting Platform”; “Betting on Kalshi, the first
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app for legal sports betting in all 50 states”; and “Sports Betting Legal in all 50 States on Kalshi.”
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Daniel Wallach, Kalshi’s Nevada Court Win May Be Short -Lived Due To Federal Wire Act Ban
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On Sports Betting , FORBES (Apr. 15, 2025), https://tinyurl.com/5kyw6n9e. Kalshi concedes that
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it has referred to its offerings as bets, but notes that this is “hardly surprising and certainly not
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grounds for estoppel” because companies and commentators “routinely refer to investments in
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financial markets in betting terms.” ECF No. 55 at 24. Kalshi’s argument is entirely disingenuous
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1 Current odds varied between -120 and -130 for the Golden Knights depending on the sports book, but the exact same prize amount is potentially identical between Kalshi and the offerings presented by the NRA members.
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