435 (2009). And, “[i]n constitutional cases, the first factor is typically dispositive.” Vitolo v. Guzman , 999 F.3d 353, 360 (6th Cir. 2021) (citing Roberts v. Neace , 958 F.3d 409, 416 (6th Cir. 2020) (order) (per curiam)). This is because courts presume irreparable harm when constitutional rights are impaired, no harm results from stopping unconstitutional conduct, and it is in the public interest to prevent violations of constitutional rights. Id. (first citing Obama for Am. v. Husted , 697 F.3d 423, 436 (6th Cir. 2012); and then citing Deja Vu of Nashville, Inc. v. Metro. Gov’t , 274 F.3d 377, 400 (6th Cir. 2001)). Still, movants seeking a preliminary injunction “‘must establish’ the four factors.” Churchill Downs Tech. Initiatives Co. v. Mich. Gaming Control Bd. , 162 F.4th 631, 642 (6th Cir. 2025) (quoting Winter v. Nat. Res. Def. Council, Inc. , 555 U.S. 7, 20 (2008)). III. FACTS Broadly speaking, the facts are undisputed. Kalshi is a derivatives exchange on which traders buy and sell “event contracts,” which concern whether certain things will or will not happen. For example, “Kalshi offers contracts on the outcomes of Supreme Court decisions, congressional votes, weather events, technological benchmarks,” and “which teams will advance in the NCAA College Basketball Tournaments or who will win the U.S. Open Golf Championship.” (Doc. No. 1 ¶¶ 48, 49.) This case concerns Kalshi’s sports event contracts only. Tennessee argues that Kalshi, despite its status as a federally designated derivatives exchange, is in fact an unlicensed sportsbook operating contrary to Tennessee gambling law and thereby depriving the state of gambling revenue and gamblers the protections state law provides. Kalshi argues that it need not comply with Tennessee law because it is exclusively regulated by federal law. The court first describes the relevant statutory schemes and then describes the plaintiff’s operations and the defendants’ enforcement threat.
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Case 3:26-cv-00034 Document 48 Filed 02/19/26 Page 4 of 25 PageID #: 872
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