Robinhood Derivatives LLC has filed a lawsuit against the Nevada Gaming Commission in the Nevada District Court, seeking to block the regulator from enforcing state gaming laws against the company. The suit was on August 19, 2025.

The dispute stems from a March 4, 2025, cease-and-desist letter sent to Kalshi by the Nevada Gaming Control Board, which warned that facilitating sports-related event contracts in Nevada could violate state gaming laws. Robinhood maintains that offering Kalshi’s contracts to Nevada residents does not breach any state regulations. However, the company temporarily restricted access to these contracts in Nevada starting March 14, 2025.

Robinhood Files Lawsuit to Block Nevada Gaming Commission

Kalshi took a parallel legal approach, filing for declaratory and injunctive relief. The Nevada court granted Kalshi a preliminary injunction, agreeing that Nevada law is likely preempted by the Commodity Exchange Act’s federal framework for commodity futures and swaps trading. Despite this ruling, the Board continued to threaten enforcement actions against Robinhood for the same transactions.

In May 2025, Robinhood engaged in multiple meetings with the Board seeking permission to offer its customers sports-related contracts in line with the court’s order for Kalshi. The Board declined, sending a letter on May 8 stating that allowing Nevada residents to trade would violate state law.

Following these developments, Robinhood reactivated access to sports-related event contracts for Nevada customers. The company now faces potential civil penalties and criminal prosecution, as well as reputational risks associated with enforcement proceedings. Robinhood argues that the lawsuit is necessary to protect both its customers and its business.

The defendants in the case include members of the Nevada Gaming Control Board and Gaming Commission, as well as Nevada Attorney General Aaron D. Ford.

Robinhood’s legal battle is compounded by related lawsuits. In July 2025, three federally recognized Indian Tribes filed suit against Kalshi and Robinhood over alleged illegal sports gambling, and Ohio Gambling Recovery LLC has also sued Robinhood seeking recovery of gambling losses.

The case highlights the growing tensions between state-level gaming regulations and federally regulated trading platforms, as Robinhood pushes to expand access to sports-related event contracts nationwide.

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