Case: 3:25-cv-00698 Document #: 1 Filed: 08/20/25 Page 19 of 47
sports event contracts to consumers on the Nation’s Indian Lands with the knowledge that its sports event contracts undercut tribal class III gaming markets, in violation of IGRA, over which the federal, state, and tribal governments exercise exclusive regulatory jurisdiction. KALSHI’S EVASION OF CFTC REGULATION 69. In 2020, as stated above, the CFTC authorized Kalshi to list event contracts for public trading as a DCM. KalshiEX LLC , 2024 WL 4164694, at *4. 70. On June 12, 2023, Kalshi filed a self-certification to trade congressional control contracts, which allowed buyers to predict which political party will control the U.S. House of Representatives or Senate on a specific, future date, and took the form of a binary “yes/no” event contract that posed the question: “Will <chamber of Congress> be controlled by <party> for <term>?” KalshiEX LLC , 2024 WL 4164694, at *4. 71. On June 23, 2023, the CFTC sent a letter to Kalshi representing that it had exercised its authority to initiate a 90-day review of Kalshi’s self-certified submission because it determined that the contracts “may involve, relate to, or reference an activity enumerated” in the CEA and applicable regulations. KalshiEX LLC , 2024 WL 4164694, at *4; Notification of 90-day Review (June 23, 2023) 2 ; Release Number 8728-23, CFTC Announces Review of Kalshi Congressional Control Contracts and Public Comment Period (June 23, 2023). 3 72. On September 22, 2023, at the conclusion of the 90-day review period, the CFTC issued an order prohibiting Kalshi from listing its congressional control contracts for trading pursuant to 17 C.F.R. § 40.11, consistent with 7 U.S.C. § 7a- 2(c)(5)(C). KalshiEX LLC , 2024 WL 4164694, at *5. In its order the CFTC determined that Kalshi’s congressional control contracts involve two activities
2 https://www.cftc.gov/sites/default/files/filings/ptc/23/06/ptc0623230001.pdf. 3 https://www.cftc.gov/PressRoom/PressReleases/8728-23.
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