Case 1:25-cv-12578-RGS Document 1 Filed 09/15/25 Page 3 of 28
federal framework for regulating commodity futures and swaps trading. Kalshi has twice won
preliminary relief on this basis against state regulators seeking to enforce their gambling or
gaming laws against its facilitation of transactions involving sports-related event contracts.
KalshiEx LLC v. Flaherty , No. 25-cv-2152, 2025 WL 1218313, at *3-8 (D.N.J. Apr. 28, 2025)
(hereinafter “ KalshiEx (D.N.J.) ”), appeal filed , No. 25-1922 (3d Cir. May 8, 2025) (enjoining
New Jersey Division of Gaming Enforcement and its members from enforcing New Jersey
gambling laws against Kalshi for offering sports-related event contracts on its CFTC-designated
exchange); KalshiEX, LLC v. Hendrick , No. 25-00575, 2025 WL 1073495, at *8 (D. Nev.
Apr. 9, 2025) (hereinafter “ KalshiEx (D. Nev.) ”) (enjoining Nevada Gaming Control Board,
Nevada Gaming Commission and their members from enforcing Nevada gaming laws against
Kalshi for offering sports-related event contracts on its CFTC-designated exchange). Robinhood
also has ongoing litigation in these jurisdictions concerning the same issues and seeking similar
relief. Robinhood Derivatives, LLC v. Flaherty , No. 1:25-cv-14723 (D.N.J. filed Aug. 29, 2025),
Robinhood Derivatives, LLC v. Dreitzer , No. 2:25-cv-01541 (D. Nev. filed Aug. 29, 2025).
5.
In light of Massachusetts’s complaint against Kalshi, in which
Massachusetts sets forth allegations explicitly referring to Robinhood and the availability of
Kalshi’s contracts on Robinhood’s platform, and motion for preliminary injunction filed against
Kalshi, Massachusetts v. Kalshi , No. 2584CV02525, Dkts. 1, 4, and because Robinhood
intermediates its customers’ event contract trades, including sports-related event contract trades,
on Kalshi’s exchange, there is a real and imminent threat that Massachusetts will file a similar
complaint and motion against Robinhood. Were it to do so, Robinhood would face an immediate
threat of civil penalties and potentially criminal penalties as well, along with the attendant
reputational harm that such an enforcement proceeding would cause. Robinhood’s
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