Case 2:25-cv-01541-JCM-DJA Document 1 Filed 08/19/25 Page 13 of 26
D.
The Letters from the Board and Kalshi’s Preliminary Injunction. 42. On March 4, 2025, the Board sent Kalshi a cease-and-desist letter
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threatening to bring a legal action to prohibit Kalshi from any trading of sports-related event contracts in Nevada. KalshiEx , No. 2:25-CV-00575, ECF No. 1-2, at 1-2. The Board asserted that Kalshi was “operating as an unlicensed sports pool” in violation of Nev. Rev. Stat. §§ 463.160(1)(a) and 473.245(2). Id. It further asserted that Kalshi was violating Nev. Rev. Stat. § 465.086 (prohibiting receipt of compensation for accepting bets or wagers upon the result of certain events without required licenses) and Nev. Rev. Stat. § 465.092 (prohibiting receipt of a wager from another person who is physically present within Nevada). Id. The Board demanded that Kalshi “immediately cease and desist from offering any event-based contracts in Nevada.” Id. The Board reserved “all rights to pursue criminal and civil actions” if Kalshi failed to comply with the cease-and-desist letter. Id. at 2. 43. Upon receiving the cease-and-desist letter, Kalshi, arguing that Nevada law is preempted by the CEA, sought declaratory and injunctive relief from this Court. KalshiEx , No. 2:25-CV-00575, ECF No. 1. The Court granted Kalshi’s motion for a preliminary injunction, holding that Kalshi demonstrated a likelihood of success on the merits, that it will likely suffer irreparable harm without relief, and that the balance of interests favors injunction. KalshiEx , 2025 WL 1073495, at *2-8. 44. Robinhood maintains that offering sports-related event contract trading to its customers in Nevada would not violate any state laws. But in light of the cease-and-desist letter that Kalshi received, as of March 14, 2025, Robinhood chose not to allow Nevada residents to enter positions for sports-related event contracts by implementing a “position closing only” restriction on existing and new Robinhood accounts with a current Nevada address. 45. On May 6, 2025, after this Court’s decision in KalshiEx , No. 2:25-CV-00575, 2025 WL 1073495, Robinhood met with the Board and explained that it believed it should be able to offer sports-related event contracts trading through Kalshi’s exchange for as long as this Court’s order in KalshiEx remains in effect. At the conclusion of
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