Case: 3:25-cv-00698 Document #: 1 Filed: 08/20/25 Page 40 of 47
finding that schemes that involve prize, chance, and consideration that do not fall into any of the specific exceptions to this prohibition are illegal. 161. With respect to § 945.03(1m)(a), Kalshi and Robinhood participate in the earnings of the Gaming Racket through a direct revenue-sharing model whereby Robinhood earns a $0.01 commission per contract traded. 162. With respect to § 945.03(1m)(b), the Gaming Racket, through Robinhood’s platform, directly receives, records, and forwards users’ “Yes” or “No” positions, which function as bets or offers to bet on the outcomes of sporting events. This includes the operational mechanisms within the platform that accept, process, and track these wagers. 163. With respect to § 945.03(1m)(e), Robinhood’s platform and mobile application serves as a machine that is used for gain, by the Gaming Racket, to facilitate the placing and resolution of these gambling contests on sporting events. 164. With respect to § 945.03(1m)(f), the purchase of “Yes” or “No” positions on these gaming contracts constitutes the sale of “chances” or “tickets” in a gambling contest, as the participants pay a fixed price for the opportunity to win a larger, fixed payout based on the uncertain outcome of a sporting event. It is a scheme involving all of the elements of gaming: prize, chance, and consideration. 165. With respect to § 945.03(1m)(g), the Gaming Racket transmits real-time pricing, probability, and outcome information related to the gaming contracts through its online platforms, which is information that assists in the placing bets or wagers within the gambling business. 166. The Gaming Racket involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business. These persons include, but are not limited to, Kalshi and Robinhood, their respective executives, officers, and employees responsible for the development, self-certification,
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