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Robinhood Sues Missouri Over Prediction Market Event Contracts

Robinhood has asked a federal court to stop Missouri and its attorney general from enforcing state gambling laws against its prediction market event contracts.
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Robinhood is suing the state of Missouri and Attorney General Catherine L. Hanaway to stop the state from enforcing its gambling laws against the company’s prediction market event contracts, according to CDC Gaming Reports. The company filed the suit in the U.S. District Court for the Eastern District of Missouri.

Robinhood seeks court orders blocking enforcement

Robinhood has requested a temporary restraining order, a preliminary injunction and a permanent injunction. The lawsuit seeks to prohibit Missouri from applying its gambling laws to the company’s event contracts.

Robinhood cited a Sep. 16 cease-and-desist notice from Missouri as the impetus for the suit. The notice demanded that Robinhood stop offering its sports events contracts in Missouri or obtain a Mission Gaming Commission license.

Preemption argument and the Third Circuit’s Kalshi ruling

Robinhood’s counsel said Missouri law is preempted by the Commodity Exchange Act, which governs the regulation of commodity futures and swaps trading.

PlayNJ reported in August 2025 on Robinhood challenging New Jersey gaming regulators after a cease-and-desist order.

The lawsuit also points to the Third Circuit’s ruling affirming a motion granting Kalshi a temporary restraining order and preliminary injunction in New Jersey.

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Source: As reported by CDC Gaming Reports.

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