Robinhood has filed its opposition to a motion for a preliminary injunction against KalshiEx LLC and Kalshi Inc. in a lawsuit brought by the Ho-Chunk Nation, arguing that the requested court order would cause serious harm to its federally authorized event contract business.

On January 20, 2026, Robinhood Derivatives, LLC and Robinhood Markets, Inc., together referred to as Robinhood, submitted their opposition papers in the U.S. District Court for the Western District of Wisconsin. The filing responds to the plaintiff’s request to block Kalshi from offering sports-related event contracts on Indian lands.

Robinhood’s central argument is that an injunction against Kalshi would disrupt its own operations, since the company uses Kalshi’s exchange to route and facilitate customer orders for event contracts. Robinhood says such an order would also conflict with the federal regulatory framework governing designated contract markets (DCMs) and futures commission merchants (FCMs).

Robinhood Says Injunction Against Kalshi Would Cause Irreparable Harm

According to the filing, if the court were to enjoin Kalshi, the exchange might need to suspend sports-related event contracts nationwide for months while assessing whether a workable geofencing solution could be developed. Even if that hurdle were cleared, Kalshi could still face challenges in offering those contracts in parts of Wisconsin outside Ho-Chunk lands, given the small size and irregular borders of some tribal parcels.

Robinhood states that either scenario would directly affect its business. As an FCM, it cannot process customer event contract orders without access to a DCM, and Kalshi is one of only two such markets with which Robinhood has an arrangement for sports-related contracts. A nationwide pause would force Robinhood to terminate open orders, liquidate positions, and suspend trading through Kalshi’s platform.

The company adds that this would lead to disruption, including customer losses and reputational harm. It points to trading volume as a factor, noting that in Wisconsin alone, more than 10,000 Robinhood customers have traded over 100 million sports-related event contracts, with most of that activity routed through Kalshi. National figures, the company says, are larger.

Robinhood also challenges the practicality of geofencing. It explains that users may reside in one location, place trades in another, and hold positions while traveling. Current tools rely on self-reported addresses or IP-based location data, which can be inaccurate within small geographic areas. The company says it lacks GPS-based geofencing and that building such a system would take months, involve high costs, and require users to consent to location tracking.

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