Case 1:25-cv-14723 Document 10-1 Filed 08/19/25 Page 2 of 34 PageID: 74
TABLE OF CONTENTS
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PRELIMINARY STATEMENT .....................................................................................................1 FACTUAL BACKGROUND ..........................................................................................................3 A. Event Contract Regulation by the CEA and CFTC .................................................3 B. Futures Commission Merchant Regulation by the CEA and CFTC........................7 C. Robinhood, Event Contracts and Kalshi ..................................................................8 D. The Cease-and-Desist Letters ..................................................................................9 ARGUMENT .................................................................................................................................11 I. ROBINHOOD IS LIKELY TO SUCCEED ON THE MERITS.......................................12 A. The CEA Preempts Application of State Gaming Laws to Sports-Related Event Contract Trading on CFTC-Designated Exchanges. ...................................13 B. The CEA’s Preemption of State Gaming Laws as Applied to Sports- Related Event Contracts Includes Those Opened and Traded Through Robinhood’s Platform. ...........................................................................................20 ROBINHOOD WILL SUFFER IRREPARABLE HARM ABSENT IMMEDIATE RELIEF. .....................................................................................................22 III. THE EQUITIES AND PUBLIC INTEREST TILT STRONGLY IN ROBINHOOD’S FAVOR. ................................................................................................25 IV. II. NO SECURITY—OR ONLY DE MINIMIS SECURITY—IS APPROPRIATE.............26 CONCLUSION ..............................................................................................................................26
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