2nd sports prediction lawsuit filed against Nevada gaming regulators
A company that offers trading on prediction markets involving sports outcomes has filed a lawsuit against eight Nevada gaming regulators and their boards seeking an injunction prohibiting them from disciplining the company for engaging in unlicensed sports wagering.
Robinhood Derivatives LLC filed the lawsuit Tuesday in U.S. District Court in Nevada.
The lawsuit, similar to a complaint filed by KalshiEx LLC in March, seeks a permanent injunction and declaratory relief that would allow Robinhood to continue to offer positions on sports outcomes.
District Judge Andrew Gordon, who is handling the Kalshi complaint, will oversee the case. Nevada Gaming Control Board Chairman Mike Dreitzer, board members George Assad and Chandeni Sendall, Nevada Gaming Commission Chairwoman Jennifer Togliatti, commissioners Rosa Solis-Rainey, Brian Krolicki, George Markantonis and Abbi Silver, Attorney General Aaron Ford and both gaming regulatory boards were named as defendants.
Because the matter is in litigation, Dreitzer said he and his fellow defendants would have no comment.
According to the lawsuit, Robinhood facilitates its trades with customers through Kalshi’s system.
Kalshi and Robinhood contend that the yes-or-no sports outcome propositions offered through the Kalshi website and regulated by the federal Commodity Futures Trading Commission are allowable because they’re under the jurisdiction of a federal commission that overrides states’ ability to regulate the company as a gambling operator. Nevada and other states that offer sports wagering say states have always had jurisdiction over gaming matters.
Some analysts have said the dispute could ultimately be taken up by the U.S. Supreme Court.
When Gordon approved a temporary injunction enabling Kalshi to continue trading while the matter is in court, Robinhood reasoned that it should be allowed to continue to trade since it uses the Kalshi platform.
But on May 8, former Control Board Chairman Kirk Hendrick sent a letter to Robinhood administrators saying “Robinhood’s intention to accept sports wagers by offering event-based wagering contracts in Nevada demonstrates willful disregard of Nevada law.”
Robinhood said in the lawsuit that it had no choice but to sue the state.
“Given the board’s refusal to acknowledge what this court has already held — that its threatened enforcement of state law is likely preempted by federal law — Robinhood had no choice but to file this lawsuit to protect its customers and its business,” the lawsuit says.
The court calendar indicates Gordon will take pleadings on the Kalshi case through late October with a possible trial in December.
In addition to filing the complaint in Nevada, Robinhood filed a similar lawsuit against New Jersey gaming regulators this week.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.
