As a preliminary matter, the court notes that other states, too, have sent Kalshi cease-and- desist letters, in response to which Kalshi has sued them and moved for preliminary injunctions. District courts have reached different results. 1 Several of those decisions are on appeal, but no appellate court has yet ruled. See KalshiEX LLC v. Martin (“ Kalshi D. Md. ”), 793 F. Supp. 3d 667, 687 (D. Md. 2025) (denying Kalshi’s motion for a preliminary injunction), appeal docketed , No. 25-1892 (4th Cir. Aug. 6, 2025); 2 KalshiEX, LLC v. Hendrick (“ Kalshi D. Nev. I ”), No. 2:25-cv- 00575-APG-BNW, 2025 WL 1073495, at *8 (D. Nev. Apr. 9, 2025) (granting Kalshi’s motion for a preliminary injunction), order dissolved (“ Kalshi D. Nev. II ”), No. 2:25-cv-00575-APG-BNW, --- F. Supp. 3d ----, 2025 WL 3286282, at *14 (D. Nev. Nov. 24, 2025) (granting Nevada defendants’ motion to dissolve the preliminary injunction), appeal docketed , No. 25-7516 (9th Cir. Nov. 28, 2025); 3 KalshiEX LLC v. Flaherty (“ Kalshi D.N.J. ”), No. 25-cv-02152-ESK-MJS, 2025 WL 1218313, at *8 (D.N.J. Apr. 28, 2025) (granting Kalshi’s motion for a preliminary injunction), appeal docketed , No. 25-1922 (3d Cir. May 15, 2025). 4 Similar motions for a preliminary injunction are pending in federal courts in Ohio, New York, and Connecticut. See Pl.’s M. & Mem. Prelim. Inj., KalshiEx LLC v. Schuler , No. 2:25-cv-01165 (S.D. Ohio Oct. 7, 2025), ECF No. 11; 1 Kalshi itself appears to have taken a different position than it does now, in a case concerning betting on election results. See Brief of Appellee KalshiEX LLC at 41, KalshiEX LLC v. CFTC , No. 24-5205 (D.C. Cir. Nov. 15, 2024) (“[A]s the legislative history directly confirms, Congress did not want sports betting to be conducted on derivatives markets.”); see also Kalshi’s Memorandum of Law in Support of Plaintiff’s Motion for Summary Judgment at the district court level, ECF No. 17-1 (noting that a provision of the Commodity Exchange Act, which the court will discuss, “functions as a check on attempts to launder . . . sports gambling through the derivatives markets” (citing 7 U.S.C. 7a-2(c)(5)(C)(i)(V))). 2 KalshiEX LLC v. Martin is “tentatively” calendared for oral argument in early May, 2026. Case No. 25-1892, ECF No. 61 (4th Cir. Feb. 4, 2026). 3 KalshiEX, LLC v. Hendrick is set for oral argument on April 16, 2026. Case No. 25-7516, ECF No. 58 (9th Cir. Feb. 8, 2026). 4 The Third Circuit held oral argument in KalshiEX LLC v. Flaherty on September 10, 2025. Case No. 25-1922, ECF No. 80 (3d Cir. Sept. 10, 2025).
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Case 3:26-cv-00034 Document 48 Filed 02/19/26 Page 2 of 25 PageID #: 870
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