Robinhood is fighting New Jersey and Nevada regulators in court
Date: 2025-08-21 Author: Oliver Abernathy Categories: BUSINESS
Robinhood Derivatives has filed lawsuits against regulators in New Jersey and Nevada. The company is demanding that measures that restrict the ability to offer customers contracts on the outcome of sports events be suspended.
Robinhood argues that the actions of local authorities are contrary to federal court decisions that allowed similar activities on the Kalshi platform. The company is confident that regulators are deliberately creating a situation in which one market participant gains an advantage, while another is at a disadvantage.
The lawsuits were filed on August 19, 2025. The documents indicate that Robinhood began offering such contracts after federal courts recognized the legality of Kalshi's work. Despite this, regulators in both states refused to approve even a temporary provision of services, ignoring both the company's requests and the court decisions.
Event contracts allow users to effectively make predictions on the outcome of sports matches and other events, using blockchain technology to record and transparently transact. Robinhood says its platform simplifies access to such tools by connecting customers to the Kalshi market.
The company's management emphasizes that a ban by states will not only hit the business, but also limit customers' choice. In addition, such actions create an atmosphere of discrimination, violating the principles of equal competition. This is why Robinhood is seeking a temporary injunction against the intervention of the authorities of New Jersey and Nevada.
The regulators themselves, in response, say that their policy is aimed at protecting the gambling laws in force in these jurisdictions. In their opinion, the measures against Robinhood are absolutely legal and necessary to comply with the rules. The lawsuits, which began in August, are ongoing.
Experts note that the outcome of the case could be decisive for the future of the entire sports contracts market in the United States. If the court supports Robinhood, this could pave the way for a wider distribution of such tools. Otherwise, the company will have to face serious restrictions, which will create a precedent for other market participants.
Robinhood itself emphasizes that the situation clearly reflects the conflict between federal regulation and individual state initiatives. The company's representatives claim that the purpose of the lawsuit is to protect the interests of customers and create fair conditions in the market for innovative financial products.
Earlier, in May 2025, the US Commodity Futures Trading Commission (CFTC) terminated the trial against Kalshi, which became an important signal for the industry and strengthened the platform's position in the market.
The escalating confrontation around Robinhood demonstrates how acute the issue of regulating new financial instruments is in different US jurisdictions.
