RobinhoodLegal

Is Robinhood legal in your state?

As of Oct 16, 2026, Robinhood has agreed in its own court cases to stop offering new sports contracts in Nevada and Michigan. In 8 more states a lawsuit, appeal or regulator’s cease-and-desist is live, Connecticut’s consumer protection orders among them; we have found no court order or agreement in force there that stops Robinhood offering contracts.

By Owen Monagan, Founder & CEOUpdated

Robinhood by state

Checked Oct 16, 2026
Sports stopped by agreement
2
Ordered, on hold
0
Case pending
8
No action found
41
Federal status
A futures commission merchant registered with the CFTC, and a member of the NFA
Source
Sports stopped by agreement
Nevada and Michigan
Supreme Court
Three petitions, none granted
Source
Next date
Nov 9, 2026: Kalshi's response to New Jersey's petition is due.
Source

Map

Every state, dated.

Every state sits in one of four groups. Select a state for where it stands and the filing behind it.

Most actions here name Robinhood Derivatives, LLC, the futures commission merchant (a broker registered with the CFTC) that offers Robinhood’s event contracts, and some also name its parent, Robinhood Markets. Robinhood is not the exchange: its help center says it routes the trades to KalshiEX, ForecastEX, Rothera Exchange and Clearing, and North American Derivatives Exchange (Crypto.com), and its newsroom says Robinhood Markets is the controlling partner in the joint venture that runs Rothera.

Robinhood, state by state

As of Oct 16, 2026

Michigan

Sports stopped by agreement

Under a court-entered agreement, Robinhood stopped offering new sports-related contracts in Michigan on September 9, 2026, and agreed to close open ones by October 9. We have not found a filing confirming the close-out.

The order
Sports stopped by agreement
2
Robinhood has agreed, in its own federal case, to stop offering new sports-related contracts in the state while the appeals run.
Ordered, on hold
0
The order is paused while the appeal is heard.
Case pending
8
A lawsuit, appeal or regulator's cease-and-desist is live. We found no court order or agreement in force that stops Robinhood offering contracts.
No action found
41
We found no order, lawsuit or cease-and-desist naming Robinhood here.

Robinhood event contracts, state by state: Robinhood Derivatives, LLC, the futures commission merchant that offers them, and where a filing names it, its parent Robinhood Markets, Inc. What a court, regulator or Robinhood itself has done, as it stands on the date above. Tiles are equal in size so a small state reads as clearly as a large one. The state list below holds the same data as text.

Lawsuits7 actions

What states have sued Robinhood?

As of Oct 16, 2026, Wisconsin, Kentucky and the City of Baltimore have sued Robinhood, and regulators in three states have sent it cease-and-desist letters or orders. Robinhood has sued officials in five states itself.

  1. 01Robinhood sues the state firstRobinhood asks a federal court to stop a state’s officials enforcing state gambling law against it. The Nevada and Michigan agreements came out of cases like these.
  2. 02A state or city suesAn attorney general or, in Baltimore, the city sues Robinhood alongside Kalshi, Coinbase and others in state court.
  3. 03A regulator sends a letterA cease-and-desist letter or order from a gaming or consumer protection regulator, as in New Jersey, Illinois and Connecticut.
DateStateActionStatus nowFiling
Mar 27, 2025New JerseyCease-and-desist. New Jersey Division of Gaming Enforcement: Cease-and-desist letter to Robinhood over sports-related contracts, as Robinhood's complaint describes it. Case pendingFiling
Apr 1, 2025IllinoisCease-and-desist. Illinois Gaming Board: Cease-and-desist letter to Robinhood over sports wagering. Case pendingFiling
Dec 2, 2025ConnecticutCease-and-desist. Connecticut Department of Consumer Protection: Order to cease and desist advertising and offering event contracts to Connecticut residents. Case pendingFiling
Apr 23, 2026WisconsinLawsuit. Wisconsin Department of Justice: Public-nuisance suit against Kalshi, Robinhood Markets, Robinhood Derivatives, Robinhood Securities and Coinbase. Dane County Circuit CourtCase pendingFiling
Jun 17, 2026KentuckyLawsuit. Kentucky Attorney General: Suit against Kalshi, Robinhood Markets, Robinhood Derivatives, Webull and Coinbase. Franklin Circuit Court, No. 26-CI-00689Case pendingFiling
Aug 13, 2026MarylandLawsuit. City of Baltimore: Consumer-protection suit against Kalshi, Robinhood Markets, Robinhood Derivatives, Webull and Coinbase. Circuit Court for Baltimore City, No. C-24-CV-26-005532Case pendingFiling
Sep 2026ConnecticutCease-and-desist. Connecticut Department of Consumer Protection: One of nine cease-and-desist orders to prediction markets announced by the governor's office. Case pendingFiling
7 actions by a state, city or regulator against Robinhood, oldest first. Status now is the state’s group on Oct 16, 2026.

Where Robinhood went to court first

StateCaseDocket
MassachusettsRobinhood Derivatives v. CampbellU.S. District Court, D. Mass., No. 1:25-cv-12578Docket
MichiganRobinhood Derivatives v. NesselU.S. District Court, W.D. Mich., No. 1:26-cv-00730Docket
NevadaRobinhood Derivatives v. DreitzerU.S. District Court, D. Nev., No. 2:25-cv-01541Docket
New JerseyRobinhood Derivatives v. FlahertyU.S. District Court, D.N.J., No. 1:25-cv-14723Docket
WashingtonRobinhood Derivatives v. GriffinU.S. District Court, W.D. Wash., No. 3:26-cv-05311Docket
Robinhood asking a federal court to stop a state enforcing its gambling law. The Nevada and Michigan agreements were filed in two of these cases.

The CFTC has also sued Connecticut, over the cease-and-desist letters it sent to Robinhood and two exchanges. Robinhood says it asked to join that suit as a plaintiff in June 2026.

Your money

What these agreements mean for your account.

In Nevada and Michigan, Robinhood’s agreements stop new sports contracts. Michigan’s also set a date to close open ones.

What each order says

Read Oct 16, 2026
Withdraw your cash
Not addressed
Close open positions
Left open
New trades
Blocked
Deposits
Not addressed
Money back to users
Not stated

From each order’s text where we hold it; “Not verified” marks a written order we haven’t retrieved. Each state page quotes the order line by line.

Wherever you are

  • Robinhood Derivatives, LLC, the company that offers Robinhood's event contracts, is registered with the CFTC as a futures commission merchant. Source
  • Robinhood's help center says it routes event contract trades to KalshiEX, ForecastEX, Rothera Exchange and Clearing, and North American Derivatives Exchange. Source

Courts

Where the courts stand.

Whether federal commodities law preempts state gambling law is unresolved. Each federal appeals court with a Robinhood case, and the Supreme Court dates ahead.

CourtRulingWhere it standsSource
Ninth CircuitAK, AZ, CA, HI, ID, MT, NV, OR, WAFor the statesIn an unpublished memorandum (No. 25-7831), affirmed the denial of Robinhood's request for a temporary restraining order in Nevada, concluding that sports-related contracts are not swaps under the Commodity Exchange Act and following its published Kalshi opinion (No. 25-7516) filed the same day. Robinhood has petitioned the Supreme Court. (Aug 28, 2026)Opinion
Sixth CircuitKY, MI, OH, TNNo decision yetRobinhood's appeal of the Michigan injunction denial (No. 26-1542), consolidated with Polymarket US's (No. 26-1552), is pending.Docket
First CircuitMA, ME, NH, PR, RINo decision yetRobinhood's appeal of the dismissal of its Massachusetts case is pending.Docket
Federal appeals courts that have a Robinhood case. A published opinion binds the federal courts in its circuit; the Ninth Circuit’s disposition in Robinhood’s appeal is an unpublished memorandum.

At the Supreme Court

The petitions ask whether federal commodities law preempts state gambling laws as applied to sports-event contracts on CFTC-registered exchanges. The Court is not being asked whether anyone must stop, or how the trades are taxed.

  • No. 26-338Filed Sep 10, 2026
    Robinhood Derivatives v. DreitzerRobinhood Derivatives. From the Ninth Circuit, No. 25-7831, decided Aug 28, 2026, which affirmed the denial of Robinhood's request for a temporary restraining order in Nevada.Nevada's response is due Nov 13, 2026, extended from Oct 14.Docket
  • No. 26-299Filed Sep 2, 2026
    Flaherty v. KalshiEXNew Jersey (state gaming regulators). From the Third Circuit, No. 25-1922, decided Apr 6, 2026, in Kalshi's case against New Jersey.Kalshi's response is due Nov 9, 2026, extended at Kalshi's request from Oct 8.Docket
  • No. 26-344Filed Sep 11, 2026
    North American Derivatives Exchange v. NevadaCrypto.com (an exchange Robinhood's help center lists). From the Ninth Circuit, No. 25-7187, decided Aug 28, 2026, the same day as Robinhood's appeal.Nevada's response is due Nov 16, 2026, extended at Nevada's request from Oct 15.Docket

Dates ahead

  • Nov 9, 2026 Kalshi's response to New Jersey's petition is due. Docket
  • Nov 13, 2026 Nevada's response to Robinhood's petition is due. Docket
  • Nov 16, 2026 Nevada's response to Crypto.com's petition is due. After briefing, the justices decide whether to take any of the three. Docket

An order or agreement about state gambling law isn't a ruling on how trades are taxed. There is no IRS guidance on event contracts. How people report a Robinhood event contracts year is on Robinhood event contracts taxes. Kalshi at the Supreme Court follows the three petitions, Robinhood’s among them.

State by state10 states with a case

Every state with a case.

Each state with a case, in its group as of Oct 16, 2026. Every filing behind them is in the sources below.

StateGroupWhere it stands
MichiganSports stopped by agreementUnder a court-entered agreement, Robinhood stopped offering new sports-related contracts in Michigan on September 9, 2026, and agreed to close open ones by October 9. We have not found a filing confirming the close-out.
NevadaSports stopped by agreementRobinhood agreed in its federal case to stop offering new sports-related contracts in Nevada from December 1, 2025, while its appeal runs.
ConnecticutCase pendingConnecticut's consumer protection department ordered Robinhood to stop offering its contracts to residents. The federal regulator has sued the state, and Robinhood says it asked to join that suit.
IllinoisCase pendingThe Illinois Gaming Board sent Robinhood a cease-and-desist letter on April 1, 2025. We found no lawsuit.
KentuckyCase pendingKentucky has sued Robinhood alongside Kalshi, Webull and Coinbase. We found no order in force.
MarylandCase pendingThe City of Baltimore has sued Robinhood. Robinhood's help center says Maryland residents can't trade event contracts.
MassachusettsCase pendingRobinhood's suit against Massachusetts officials was dismissed on March 13, 2026, and Robinhood has appealed. We found no order against Robinhood in force.
New JerseyCase pendingRobinhood sued New Jersey's gaming regulators after a cease-and-desist letter. Robinhood says the state agreed to a preliminary injunction against enforcement while Kalshi's appeal was decided.
WashingtonCase pendingRobinhood sued Washington officials. Under a court order, the state is not enforcing its gambling laws against Robinhood's event-contract business and the case is paused.
WisconsinCase pendingWisconsin has sued Robinhood alongside Kalshi and Coinbase. We found no order in force.
10 states with a case. Every state not listed: no order, lawsuit or cease-and-desist found as of Oct 16, 2026.

Sources37 documents

Where each status comes from.

Primary documents first, each with the date we last read it. Where we keep a copy of a filing, it is linked beside the original.

  1. Complaint, Robinhood Derivatives v. Dreitzer, ECF 1U.S. District Court, D. Nev. · Checked October 16, 2026Our copy
  2. Order denying motion for temporary restraining order, ECF 90U.S. District Court, D. Nev. · Checked October 16, 2026Our copy
  3. Joint notice of agreement concerning enforcement pending appeal, ECF 91U.S. District Court, D. Nev. · Checked October 16, 2026Our copy
  4. Robinhood Derivatives v. Dreitzer, memorandum dispositionU.S. Court of Appeals, Ninth Circuit · Checked October 16, 2026Our copy
  5. Supreme Court docket, No. 26-338 Supreme Court of the United States · Checked October 16, 2026
  6. Robinhood Help Center: Event contract restrictions Robinhood · Checked October 16, 2026
  7. Complaint, Robinhood Derivatives v. Nessel, ECF 1U.S. District Court, W.D. Mich. · Checked October 16, 2026Our copy
  8. Administrative order reassigning cases, ECF 15U.S. District Court, W.D. Mich. · Checked October 16, 2026Our copy
Show all 37 documents
  1. Opinion and order denying preliminary injunction, ECF 39U.S. District Court, W.D. Mich. · Checked October 16, 2026Our copy
  2. Notice of appeal, ECF 40U.S. District Court, W.D. Mich. · Checked October 16, 2026Our copy
  3. Stipulation and order concerning enforcement, ECF 50U.S. District Court, W.D. Mich. · Checked October 16, 2026Our copy
  4. Robinhood agrees to halt sports-related event contracts in Michigan Michigan Gaming Control Board · Checked October 16, 2026
  5. Complaint, Robinhood Derivatives v. Flaherty, ECF 1 U.S. District Court, D.N.J. · Checked October 16, 2026
  6. Robinhood Markets, Form 10-Q for the quarter ended June 30, 2026 Robinhood Markets, Inc. · Checked October 16, 2026
  7. Complaint, Robinhood Derivatives v. Campbell, ECF 1U.S. District Court, D. Mass. · Checked October 16, 2026Our copy
  8. Order on motion to dismiss, ECF 69U.S. District Court, D. Mass. · Checked October 16, 2026Our copy
  9. Amended stipulation of non-enforcement, ECF 100U.S. District Court, D. Mass. · Checked October 16, 2026Our copy
  10. Robinhood's opposition to motion to dismiss, ECF 105U.S. District Court, D. Mass. · Checked October 16, 2026Our copy
  11. Order of dismissal, ECF 109U.S. District Court, D. Mass. · Checked October 16, 2026Our copy
  12. Robinhood Derivatives v. Griffin, stipulated motion and order concerning enforcement actions, Dkt. 17U.S. District Court, W.D. Wash. · Checked October 16, 2026Our copy
  13. Cease and desist order, Robinhood Derivatives, Case No. 2025-336Connecticut Department of Consumer Protection · Checked October 16, 2026Our copy
  14. Connecticut governor's office release, “Governor Lamont announces new actions against illegal prediction markets offering sports wagers” Connecticut Governor · Checked October 16, 2026
  15. Complaint, United States and CFTC v. ConnecticutU.S. District Court, D. Conn. · Checked October 16, 2026Our copy
  16. Illinois Gaming Board letter to Robinhood Illinois Gaming Board · Checked October 16, 2026
  17. Illinois Gaming Board: cease and desist letters Illinois Gaming Board · Checked October 16, 2026
  18. Complaint to abate public nuisance, Wisconsin v. Kalshi et al. (Dane County)Wisconsin Department of Justice · Checked October 16, 2026Our copy
  19. Notice of removal, Wisconsin v. Kalshi, ECF 1U.S. District Court, W.D. Wis. · Checked October 16, 2026Our copy
  20. Wisconsin's motion to remand, ECF 27U.S. District Court, W.D. Wis. · Checked October 16, 2026Our copy
  21. Robinhood's motion to transfer venue, ECF 41U.S. District Court, W.D. Wis. · Checked October 16, 2026Our copy
  22. Stipulation dismissing Robinhood Securities, ECF 52U.S. District Court, W.D. Wis. · Checked October 16, 2026Our copy
  23. Wisconsin's motion for a preliminary injunction, ECF 62U.S. District Court, W.D. Wis. · Checked October 16, 2026Our copy
  24. Complaint, Commonwealth of Kentucky v. KalshiEX et al. (Franklin Circuit Court)Kentucky Attorney General · Checked October 16, 2026Our copy
  25. Kentucky's reply in support of its motion to remand, Kentucky v. KalshiEX U.S. District Court, E.D. Ky. · Checked October 16, 2026
  26. Complaint, City of Baltimore v. KalshiEX et al. (Baltimore City Circuit Court)Circuit Court for Baltimore City · Checked October 16, 2026Our copy
  27. Robinhood Help Center: Event contracts overview Robinhood · Checked October 16, 2026
  28. Supreme Court docket, No. 26-299 Supreme Court of the United States · Checked October 16, 2026
  29. Supreme Court docket, No. 26-344 Supreme Court of the United States · Checked October 16, 2026

Also on Realize

At tax time.

An agreement changes where Robinhood offers a market. It is not a tax ruling.

Supreme CourtKalshi at the Supreme Court. The three petitions, Robinhood’s own No. 26-338 among them, and the appeals court rulings behind them. Read the guide FilingRobinhood event contracts taxes. What Robinhood reports for event contracts, what it leaves out, and the common ways a year is reported. Read the page

Price your Robinhood year three common ways.

Connect Robinhood read-only for a free estimate under each treatment.

Get started