Case: 2:25-cv-01165-SDM-CMV Doc #: 34-1 Filed: 11/14/25 Page: 7 of 22 PAGEID #: 525
Indian lands, in accordance with IGRA. See KalshiEX, LLC v. Martin , No. 25-cv-1283, 2025 WL 2194908 at *9 (D. Md. Aug. 1, 2025) (“Although the savings clause in the [CEA’s] exclusive jurisdiction provision cuts both ways …, given the presumption against preemption, its ambiguity means that on balance it cuts against a finding of field preemption.”). 3 2. Kalshi’s sports-event contracts are not valid “swaps” Kalshi argues that its sports-event contracts are subject to the CFTC’s exclusive jurisdiction because they are “swaps” traded on a DCM. See Pl.’s Mot. Supp. Prelim. Inj., ECF No. 11 at PageID 227–28. But Kalshi’s sports-event contracts are not valid “swaps” and, therefore, are not subject to the CFTC’s exclusive jurisdiction. To constitute a valid “swap,” an event contract must be “dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence.” 7 U.S.C. § 1a(47)(A)(ii) (emphasis added). Here, Kalshi’s sports-event contracts do not meet this definition because they are not dependent on the occurrence , nonoccurrence, or extent of the occurrence of a sports event—i.e., whether the sports event occurs or the extent to which it occurs 4 —but rather on the outcome of the sports event—i.e., which team wins. This is precisely what the Nevada District Court held in a recent decision. Crypto.com , 2025 WL 2916151, at *9 (holding sports-event contracts are not 3 In addition to IGRA, Kalshi’s sports-event contracts violate other federal laws, including the Wire Act, 18 U.S.C. § 1084. See Martin , 2025 WL 2194908, at *10 (holding that Kalshi’s proposed interpretation of the CEA “would necessarily entail at least a partial implied repeal of the IGRA and the Wire Act”). 4 For example, whether “a boxing match … take[s] place (occurrence), [does] not take place (nonoccurrence), or go[es] only three rounds (extent of the occurrence)” could arguably be the subject of a valid sports-event contract. See Crypto.com , 2025 WL 2916151, at *8.
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