Robinhood files lawsuit against MGC and AG, requests injunction to disallow regulation
The filing comes just days after the MGC and Attorney General Andrea Joy Campbell issued a lawsuit against Kalshi for allegedly failing to follow state law which governs sports betting.
Key Points
- Robinhood stated within the filing it had “no choice” but to sue both entities in order to protect its operations and consumer base once the MGC and AG issued a lawsuit against Klashi
- The operator requested an injunction be awarded against the MGC and AG to disallow either state body from attempting to regulate its trading of event contracts
Robinhood Markets has filed a lawsuit in the US District Court of Massachusetts against the Massachusetts Gaming Commission (MGC) and Attorney General Andrea Joy Campbell, requesting an injunction be awarded to disallow either state entity from attempting to regulate its trading of event contracts.
Despite having partnered with KalshiEX to offer sports trading markets in August 2025, Robinhood claims it only facilitates the placement and liquidation of each contract, while Kalshi provides the ability to trade on its own regulated platform.
“This means that while Robinhood customers are placing orders for event contract trades in their Robinhood accounts, the trades themselves are taking place on Kalshi’s CFTC-designated exchange,” Robinhood stated within the September 15 filing.
“The user interface is Robinhood’s instead of Kalshi’s, which is convenient for Robinhood customers but does not affect the way in which trades are executed on Kalshi’s exchange or regulated by the CFTC; it merely adds additional CFTC regulation of Robinhood’s activities as an FCM.”
The operator also said it had “no choice” but to file the lawsuit once the MGC and Attorney General Campbell issued a lawsuit against Kalshi on September 12 for allegedly failing to follow state law which governs sports betting.
Good to know: Massachusetts Representative David Muradian introduced HB 4431 on August 20, which would prohibit any online game, contest or promotion that simulates casino gaming, lottery or sports betting and utilizes a dual-currency system of payment
“Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences,” Campbell said.
“This lawsuit will ensure that if Kalsi wants to be in the sports gaming business in Massachusetts, they must obtain a license and follow our laws. I am grateful for the ongoing partnership with the Gaming Commission.”
Campbell went on to accuse Kalshi of using an online exchange platform to offer sports wagering to consumers under the “guise of sports events contracts,” allowing bettors to select a “yes” or “no” option depending on the likelihood of an event to occur.
Robinhood felt as if it would also be brought to trial by the regulators given its partnership with Kalshi, and requested the court declare any intervention from the state be in violation of the Supremacy Clause of the US Constitution by attempting to supercede the Commodity Exchange Act.
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