Robinhood Derivatives has initiated legal actions against Nevada and New Jersey regulators in a bid to halt threats of restrictive measures regarding sports event contracts.
Background of Robinhood's Lawsuits
Robinhood Derivatives has filed two lawsuits against gaming regulators in Nevada and New Jersey. The company claims that it began offering sports event contracts in these states after federal courts allowed similar contracts for Kalshi. Robinhood complains that after these rulings, regulators continued attempts to ban the offering of these contracts.
Arguments by Robinhood Against Regulatory Actions
In its lawsuits, Robinhood argues that if regulators are allowed to take action against it but not against Kalshi, this will harm its competitiveness in the sports event contract market. Robinhood also accuses regulators of ignoring the court's decision that allowed Kalshi to offer such contracts.
Next Steps for Robinhood in Legal Proceedings
Robinhood has requested the courts to issue temporary restraining orders to stop regulatory actions against it. The company faced refusals and lack of engagement from regulators following its attempts to gain permission to offer contracts, leading to the current lawsuits.
Robinhood's lawsuits against Nevada and New Jersey regulators highlight the ongoing challenges and uncertainties in the regulation of new forms of gambling on sports events. Legal proceedings are underway.
