Robinhood Sues Nevada Gaming Commission Over Contracts

Robinhood Nevada Contracts dispute has prompted Robinhood Derivatives LLC to file a lawsuit against the Nevada Gaming Commission. The lawsuit, filed on August 19, 2025, in the Nevada District Court, comes after months of disputes over the legality of sports-related event contracts. 

The conflict began on March 4, 2025, when the Nevada Gaming Control Board sent Kalshi a cease-and-desist letter that threatened to prohibit the trading of sports-related event contracts in the state. Although Robinhood argued that offering such contracts through Kalshi’s exchange would not violate Nevada laws, the company restricted Nevada residents from trading after March 14, 2025. Kalshi challenged the state directly, and the court granted preliminary relief. The judge held that Kalshi had shown a strong likelihood of success in its argument that Nevada law is preempted by the Commodity Exchange Act’s federal framework. 

The ruling also recognized that Kalshi could face “irreparable harm” without protection. Despite this injunction, the Board continued to warn Robinhood that enforcement would still apply against its operations. Robinhood engaged in meetings with the Board in May, but the agency declined to agree to any arrangement that would allow Robinhood to resume offering contracts. 

Robinhood Sues Nevada Gaming Commission Over Contracts

By May 8, the Board issued a formal letter from its Las Vegas office, asserting that Robinhood’s facilitation of trades would be a violation of state law. After repeated rejections, Robinhood decided to restore access for its Nevada customers, emphasizing that it could not continue to suffer “substantial ongoing economic and reputational harms.” The company now faces the threat of civil penalties, criminal charges, and reputational damage.

Robinhood insists that it has no alternative but to seek judicial protection. The lawsuit names officials from both the Nevada Gaming Control Board and the Nevada Gaming Commission, along with Attorney General Aaron D. Ford, as defendants. Adding further complexity, Robinhood is also entangled in other legal challenges. In July 2025, three federally recognized Indian Tribes filed a lawsuit accusing Robinhood and Kalshi of facilitating illegal sports gambling. 

Similarly, Ohio Gambling Recovery LLC has filed a separate case demanding recovery of alleged gambling losses. Robinhood maintains that its case is vital to ensure fairness, declaring that “customers deserve access to federally regulated markets without the constant threat of conflicting state enforcement.”

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