The financial-services company Robinhood has filed a lawsuit in Massachusetts against the area’s Attorney General and the Massachusetts Gaming Commission.
It was filed on Monday (September 15), with Robinhood asking a judge to award it an injunction against the state bodies to prevent them “from enforcing preempted Massachusetts law against Robinhood for its facilitation of transactions involving sports-related event contracts.”
In the filing, the company points to Kalshi a few times. This comes after the state of Massachusetts filed a lawsuit against the prediction market platform for allegedly offering unlicensed sports gambling.
BREAKING: Robinhood has filed a lawsuit in Mass. federal court against the @MassAGO and @MassGamingComm to block the two state agencies "from enforcing preempted Massachusetts law against Robinhood for its facilitation of transactions involving sports-related event contracts." pic.twitter.com/l0m1SFekqm
— Daniel Wallach (@WALLACHLEGAL) September 15, 2025
The lawsuit was filed last Friday (September 12) and it claims that Kalshi uses an online exchange to offer sports wagering, under the guise of event contracts. The Attorney General’s Office alleges that “these ‘event contracts’ closely resemble sports wagers offered by licensed operators.”
A press release was published by the State Attorney General Andrea Joy Campbell in which she states: “Sports wagering comes with significant risk of addiction and financial loss and must be strictly regulated to mitigate public health consequences.
“This lawsuit will ensure that if Kalshi wants to be in the sports gaming business in Massachusetts, they must obtain a license and follow our laws. I am grateful for the ongoing partnership with the Gaming Commission.”
Robinhood refers to Kalshi in its Massachusetts lawsuit
Robinhood refers to the new state court lawsuit against Kalshi and states there is a “real and imminent threat that Massachusetts will file a similar complaint and motion against Robinhood” as the company intermediates its customers’ event contract trades, including sports-related event contract trades, on Kalshi’s exchange.
“While Robinhood facilitates the placement and liquidation of event contracts for its customers, the contracts themselves trade on KalshiEx LLC’s (“Kalshi”) Commodity Futures Trading Commission (“CFTC”)-designated exchange,” the filing also states.
After explaining the reasoning for going ahead with the lawsuit, the company summed it up with the following: “Robinhood therefore had no choice but to file this lawsuit to protect its customers and its business. Robinhood respectfully requests that this Court enjoin Defendants from enforcing preempted MA law against Robinhood for its facilitation of sports-related event contracts.”
Featured Image: AI-generated via Ideogram
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