Case 1:25-cv-12578-RGS Document 1 Filed 09/15/25 Page 23 of 28
that Massachusetts explicitly mentions Robinhood in its Massachusetts v. Kalshi complaint and
recognizes that trading of Kalshi event contracts is available on Robinhood’s platform, Exhibit 1
¶¶ 129-130, and the emergency expedited relief Massachusetts has sought, Massachusetts v.
Kalshi , No. 2584CV02525, Dkts. 4, 10. A credible threat of prosecution under a preempted state
statute causes irreparable harm. See Morales , 504 U.S. at 381.
58.
Further, the harm to Robinhood’s reputation caused by the potential or
actual enforcement proceedings by Massachusetts and/or the Massachusetts Gaming
Commission is also irreparable, because it cannot be easily or quickly repaired. KalshiEx
(D.N.J.) , 2025 WL 1218313, at *7; KalshiEx (D. Nev.) , 2025 WL 1073495, at *7-8; see also
Ross-Simons of Warwick, Inc. v. Baccarat, Inc. , 102 F.3d 12, 20 (1st Cir. 1996) (“[I]njury to . . .
reputation is not easily measured or fully compensable in damages. Accordingly, this kind of
harm is often held to be irreparable.”). Robinhood also stands to lose the goodwill of its
customers, including its over 31,000 customers in Massachusetts. This goodwill, once lost,
cannot easily or quickly be regained, even if Robinhood ultimately prevails in litigation, and the
risk to goodwill therefore also constitutes irreparable harm. KalshiEx (D.N.J.) , 2025
WL 1218313, at *7; KalshiEx (D. Nev.) , 2025 WL 1073495, at *7; see also Get In Shape
Franchise, Inc. v. TFL Fishers, LLC , 167 F. Supp. 3d 173, 202-03 (D. Mass. 2016) (holding that
company was entitled to preliminary injunction to avoid reputational harm and loss of goodwill).
59.
Nor could Robinhood avoid irreparable harm by seeking a sports-
wagering license in Massachusetts or by ceasing to offer sports-related event contract trading in
Massachusetts. Even if sports-related event contract trading were sports wagering—and it is
not—and even if Robinhood could seek and be granted a Massachusetts sports-wagering license,
which is by no means a certainty due to the discretionary nature of the review process, see
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