Robinhood is asking a federal judge to stop Massachusetts from applying its gaming laws to the company’s sports prediction operations. The move comes days after a state court approved action targeting Kalshi, another platform offering similar sports betting contracts tied to Massachusetts sports betting activity.
If the injunction is granted, Massachusetts could become a key example in the ongoing legal question of whether states can regulate federally controlled prediction and futures markets.
Robinhood’s Recent Request
Robinhood says Massachusetts’ gaming laws conflict with federal rules under the Commodity Exchange Act, which govern futures and swaps trading. The company argues that state regulation would interfere with the Commodity Futures Trading Commission’s authority and create inconsistent rules across the country.
The company offers sports contracts through Kalshi and ForecastEx, and says Massachusetts enforcement threatens civil fines, potential criminal penalties, and the trust of its 41,000 Massachusetts users.
A letter from the Massachusetts Gaming Commission warned sports gaming operators last November that directing customers to unlicensed markets could result in penalties.
Past Attempts to Block Enforcement
Robinhood tried to stop Massachusetts from enforcing its gaming laws late last year but was initially blocked by the courts, which said the case wasn’t ready while the state’s lawsuit against Kalshi was ongoing. The case was reopened in January after Robinhood announced its partnership with ForecastEx.
The company is represented by Cravath, Swaine & Moore LLP and Eckert Seamans Cherin & Mellott LLC. The case is officially Robinhood Derivatives, LLC v. Campbell, D. Mass., No. 1:25-cv-12578, with the motion filed January 20, 2026.
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