Robinhood sues state gambling regulators in Nevada and New Jersey

Robinhood has resumed sports-related offerings in New Jersey and Nevada and sued those states’ gaming regulators in federal court, citing early legal victories by Kalshi, which powers its sports event contracts.

The nearly identical suits, filed Tuesday, seek to stop potential enforcement actions from the state regulators in advance now that Robinhood is opening back up sports offerings to customers in New Jersey and Nevada. The suits were filed the same day the stock trading platform announced new prediction markets that will allow users to trade on the outcomes of pro and college football games.

A Robinhood spokesperson told Front Office Sports on Wednesday that the company’s event contracts “are offered in a compliant, federally regulated way through our CFTC-registered Futures Commission Merchant, Robinhood Derivatives.”