Catenaa, Friday, August 22, 2025- Robinhood Derivatives filed lawsuits against Nevada and New Jersey regulators, claiming the states blocked its entry into the sports event contracts market despite federal court rulings favoring rival platform Kalshi.
The company seeks court orders and temporary restraining orders to prevent enforcement actions while litigation proceeds.
Robinhood began offering event contracts in both states after federal judges earlier this year barred Nevada and New Jersey gaming regulators from enforcing bans against Kalshi, which operates under Commodity Futures Trading Commission oversight.
The company argued regulators ignored these rulings, creating an uneven playing field. Robinhood stated that without similar protections, it could lose market opportunities in sports event contracts, which cover outcomes from NFL and NCAA games to elections.
The complaints detail clashes with state authorities. In New Jersey, the Division of Gaming Enforcement reportedly refused to confirm that Robinhood could operate under the Kalshi precedent.
In Nevada, the Gaming Control Board warned any offering would constitute a “willful violation” of law despite a federal court siding with Kalshi. Robinhood is requesting judicial intervention to continue operations without regulatory threats.
The legal actions coincide with scrutiny in the European Union over Robinhood’s tokenized stock products tied to private companies such as OpenAI and SpaceX.
The Bank of Lithuania is investigating compliance with investor disclosure requirements. Robinhood clarified that its blockchain-based stock tokens, launched on Ethereum’s Arbitrum network, are price-tracking derivatives rather than actual equity.
OpenAI has disavowed the tokens, warning investors to exercise caution.
