Robinhood files lawsuits against New Jersey and Nevada regulators
The complaints will attempt to prohibit state officials from enforcing gaming or gambling laws against Robinhood for its offering of sport-related event contracts.
Key Points
- Robinhood contracts are currently traded on KalshiEx LLC, which the CFTC officially named as a designated contract market nearly five years prior to the time of writing
- The legal pursuits come after Robinhood was unable to reach an agreement with the NGCB and New Jersey DGE to begin offering customers sports-related trading
Following its inability to reach agreement with the Nevada Gaming Control Board (NGCB) and New Jersey Division of Gaming Enforcement (DGE) to begin offering residents of both states sports-related event contracts, Robinhood Derivatives LLC has now filed lawsuits against both regulators in US District Courts.
“If states could regulate some but not all entities relevant to these transactions, such regulation would infringe on the CFTC’s exclusive jurisdiction and fracture what Congress intended to be a uniform set of regulations for commodity futures and swaps trading,” Robinhood said within the complaints.
The complaints will attempt to prohibit state officials from enforcing gaming or gambling laws against Robinhood for its offering of sport-related event contracts. Robinhood contracts are currently traded on KalshiEx LLC, which the Commodities Future Trading Commission (CFTC) officially named as a designated contract market nearly five years prior to the time of writing.
Robinhood also stated it faces an “immediate threat of civil penalties and criminal prosecution” from the NGCB and New Jersey DGE, leaving the operator with “no other choice” but to file lawsuits in federal courts.
Good to know: A federal judge denied an injunction and a temporary restraining order on August 4 after Kalshi filed both against a Maryland regulator
On March 28, the DGE sent cease-and-desist letters to both Robinhood and Kalshi, claiming both companies were offering “unauthorized sports wagering” to New Jersey players.
The Ohio Casino Control Commission took similar action in April 2025, while the Blue Lake Rancheria, Chicken Ranch Rancheria of Me-Wuk Indians and Picayune Rancheria of Chukchansi Indians filed a lawsuit within the Northern District of California against Kalshi and Robinhood for allegedly operating illegal sports betting on Tribal lands.
The New Jersey and Nevada lawsuits directly name NGCB Chairman Mike Dreitzer and DGE Interim Director Mary Jo Flaherty, as well as New Jersey Attorney General Matthew Platkin and Nevada Gaming Commission Chairwoman Jennifer Togliatti.
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