Robinhood Filed Lawsuit to Shield in Massachusetts District Court

Robinhood Derivatives has filed a lawsuit in the Massachusetts District Court seeking to prevent state regulators from enforcing Massachusetts law against the company for facilitating trades in sports-related event contracts.

The complaint, filed on September 15, 2025, names several high-ranking state officials as defendants, including Attorney General Andrea Joy Campbell, Massachusetts Gaming Commission Chair Jordan Maynard, and Commissioners Eileen O’Brien, Bradford R. Hill, Nakisha Skinner, and Paul Brodeur, all in their official capacities.

Robinhood Filed Lawsuit to Shield Platform in Massachusetts District Court

Robinhood states in its complaint that it offers approved customers the ability to trade sports-related event contracts through its platform. However, the company emphasizes that all actual trades are executed on KalshiEx LLC’s regulated exchange, with Robinhood merely facilitating the placement and liquidation of contracts for its users.

The lawsuit comes shortly after Massachusetts filed its own case against Kalshi on September 12, 2025. The state accused Kalshi of offering sports wagering without a license under G.L. c. 23N, § 5 et seq., seeking both monetary relief and a permanent injunction to halt its operations. Massachusetts highlighted Robinhood’s role, alleging that approximately $1 billion in Kalshi wagers were via Robinhood during the second quarter, generating an estimated $10 million in revenue for Kalshi. The state also filed an Emergency Motion for a Preliminary Injunction against Kalshi.

Robinhood argues that, given Massachusetts’s explicit references to the platform in its complaint against Kalshi, the company faces a real and imminent threat of enforcement action. The fintech warns that such action could result in civil or criminal penalties and reputational damage, while potentially cutting Massachusetts customers off from trading sports-related event contracts.

The company is now asking the court to enjoin the state from enforcing preempted Massachusetts law against it, citing its facilitation of transactions solely on Kalshi’s regulated exchange. Robinhood has indicated that similar litigation is ongoing in other jurisdictions concerning sports-event contracts, where the company has sought comparable relief.

This case highlights the growing tension between emerging fintech platforms and state regulators over sports-related trading products, an area that continues to see legal uncertainty nationwide.

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