Case: 3:25-cv-00698 Document #: 1 Filed: 08/20/25 Page 25 of 47
or gambling, at a time when power in the CFTC is being consolidated in one commissioner, Quintenz, a Kalshi board member, with the knowledge that the CFTC is understaffed and lacks the resources to adequately review and regulate Kalshi’s self-certified contracts to ensure compliance with the CEA. 92. As a direct result of these events, Kalshi has been able to avoid regulation of its sport gambling activities by the CFTC. KALSHI’S FALSE AND MISLEADING ADVERTISING 93. Kalshi actively promotes its products, including its sports betting and event “contracts,” across major social media platforms such as TikTok, Instagram, X.com, and YouTube. 94. On its Instagram account (@kalshi_official), Kalshi, as shown in Exhibit A , has published advertisements asserting itself as “The First Nationwide Legal Sports Betting Platform” and that its customers can engage in “Sports Betting Legal in all 50 States on Kalshi.” ( See Exhibit A ). 95. Kalshi’s Instagram account includes a post, dated January 23, 2025, stating in the caption post: “Legal sports markets, accessible to Americans in all 50 states.” The post remains accessible on Kalshi’s Instagram. ( See Exhibit B ). 96. On February 3, 2025, Robinhood announced in a press release it would be offering “Super Bowl Betting via Kalshi.” ( See https://www.bloomberg.com/news/articles/2025-02-03/robinhood-launches-super- bowl-event-contracts-for-retail-traders, last accessed on July 24, 2025). Kalshi posted the same announcement to its Instagram on February 3, 2025. 97. On June 11, 2025, Kalshi posted an advertisement to its Instagram account containing depictions of people exclaiming “I’m all in on OKC” and “Indiana got that dog in them.” The advertisement further contains a depiction of a shirtless man exclaiming “Kalshi lets you legally trade on anything, anywhere in the
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