Case: 3:25-cv-00698 Document #: 1 Filed: 08/20/25 Page 30 of 47
class III gaming across the country, Kalshi repeatedly acknowledged that it could not legally offer sports betting contracts because, “Congress did not want sports betting to be conducted on derivatives markets.” KalshiEX LLC v. Commodity Futures Trading Comm’n , No. 23-3257 (JMC), 2024 18 WL 4164694 (D.D.C. Sept. 12, 2024), Appellee’s Brief, at 41. 115. Similarly, Robinhood Derivatives, LLC, trying to get the CFTC to take a narrow approach to defining gaming, recommended that the CFTC “focus on prohibiting single sporting events or contests.” 156 Cong. Rec. S5906-07, (daily ed. July 15, 2010). Further emphasizing its point, it stated, “[t]o the extent this discussion on the floor of the Senate represents Congressional intent, it focused on a comparison of gambling related to the results of single sporting events.” Id. 116. Immediately following a court ruling for Kalshi and against the CFTC, allowing Kalshi to list its election contracts, Robinhood announced its intention to allow trading on the outcome of the U.S. Presidential election. Right after this announcement, Robinhood saw a spike in its shares of 4%, despite the event contracts being rolled out to a limited number of U.S. citizen users. 117. In early 2025, the Gaming Racket began offering sports betting products. While its initial effort to offer a product for the 2025 Super Bowl were rebuffed by the CFTC, the Gaming Racket shortly after offered sports betting products strategically timed with the March Madness NCAA men’s and women’s basketball tournaments. During the 2025 March Madness tournaments, Kalshi reported a substantial trading volume of over $320 million, specifically on tournament-related markets. These trades took place in all 50 states and were widely available on Robinhood. 118. The Gaming Racket used a different arrangement than Robinhood typically uses with its third-party partnerships. Rather than Robinhood facilitating
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