Robinhood says federal law pre-empts Missouri’s attempt to regulate its sports event contracts as gambling.
The hit
Robinhood has sued Missouri’s attorney general & the state’s gaming commission, seeking a court order to stop them regulating its sports event contracts. The company filed the complaint in federal court in Missouri on 9 November, according to the filing. Robinhood says the contracts trade on federally regulated exchanges & Missouri has no jurisdiction over them.
Why it matters
The case turns on who gets to decide where Americans can trade sports contracts: state gaming regulators or the federal derivatives watchdog. Robinhood leans on a recent Third Circuit ruling that upheld a finding that Kalshi was likely to succeed in its fight against New Jersey, arguing the same pre-emption principle applies to Missouri.
The record
| Cease-&-desist letter sent | 16 September 2026 (Missouri attorney general Catherine Hanaway) |
|---|---|
| Robinhood’s reply | 16 October 2026 |
| Missouri’s threat of court action | in at least three days, per Missouri solicitor general, 6 November 2026 |
| States where the CFTC has already sued over event contracts | at least 10 states, according to Robinhood’s complaint, including Arizona, Illinois, New York & Minnesota |
What happens next
Watch the Eastern District of Missouri docket (case 4:26-cv-01932) for Missouri’s response & any early ruling on Robinhood’s request for an injunction.
Sources: Robinhood Derivatives, LLC v. Missouri Attorney General, complaint (CourtListener)
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