Robinhood Challenges State Regulators
The battle for dominance in the sports event contracts market just escalated. Robinhood Derivatives, the trading giant’s derivatives arm, has filed lawsuits against regulators in New Jersey and Nevada, accusing them of trying to block its entry into the lucrative space — despite federal rulings that cleared the path for rival platform Kalshi.
Federal Rulings and State Resistance
The lawsuits, filed Tuesday, argue that both states ignored federal court decisions that already barred similar enforcement actions against Kalshi, allowing the platform to offer users the chance to trade on event outcomes — from sports games to elections.
Robinhood Warns of Market Disadvantage
Robinhood says this selective crackdown puts it at a disadvantage, warning it could lose substantial market share if forced to stay on the sidelines.
“If Kalshi can offer these contracts and we can’t, that’s not just unfair — it’s harmful to our customers and business,” the company argued.
Event Contracts and Blockchain Integration
Event contracts, a rising trend in trading, allow users to speculate on real-world events, with blockchain technology often used to ensure transparency and settlement accuracy.
Regulatory Pushback
Despite Robinhood’s outreach, regulators in both states reportedly refused to reconsider their positions. In New Jersey, the Division of Gaming Enforcement allegedly declined meetings despite multiple follow-ups. In Nevada, officials went as far as warning that any attempt to offer such contracts could be seen as “willful violations” of state law.
Robinhood Seeks Federal Intervention
Now, Robinhood is asking federal courts to step in, filing for temporary restraining orders in both states to prevent regulators from taking action while the cases are heard.
The Bigger Picture: Billions at Stake
With billions at stake in the rapidly growing event contracts market, this legal clash could set the stage for a landmark decision that reshapes the future of blockchain-backed predictions and state-level regulatory power.
