Robinhood is following in Kalshi’s judicial footsteps, but not down every path.
The Kalshi partner who offers several Kalshi sports event contracts within its own trading app is taking both the New Jersey and Nevada gaming regulators to court.
Robinhood initially complied with C&D
According to the filings, Robinhood pulled sports products out of those markets when the company received cease and desist letters earlier this year. However, after Kalshi won preliminary injunctions in its cases with the regulators, Robinhood came back to the table hoping to come back online.
Robinhood argued that, since the contracts they are offering are provided by Kalshi, the injunction should clear a pathway for them to return to the state.
In both instances, state regulators disagreed and Robinhood could not reach an agreement to return to the markets.
Accordingly, the group has sued both regulators, seeking a preliminary injunction like the one Kalshi received to operate in the two states. It also is asking the courts to declare that event contracts of any variety are legal in the state under the Commodity Exchange Act (CEA).
Robinhood remains sidelined in Maryland
One court that Robinhood did not follow Kalshi into is Maryland.
Maryland Lottery and Gaming confirmed to SBC Americas that Robinhood ceased offering sports contracts in the state on APril 22 and have not had any discussions about a potential return.
While Kalshi succeeded in obtaining injunctions in New Jersey and Nevada, it was not able to pull off the judicial hat trick. Maryland District Court Judge Adam Abelson declined to grant injunctive relief, splitting the decision on that front.
Robinhood also has two other lawsuits in which it is the defendant. Tribal groups in both California and now Wisconsin are suing Robinhood and Kalshi, levying RICO charges at the groups for collaborating to offer what they argue are an illegal gambling product in the state.
Even though Robinhood is meeting resistance from certain groups, it continues to expand its sports offerings. Earlier this week it announced plans to offer pro and college football contracts in advance of the upcoming season.
