Robinhood is suing the state of Missouri and Attorney General Catherine L. Hanaway to prohibit the state from enforcing its gambling laws against the prediction market company’s event contracts.
Robinhood filed its lawsuit in U.S. District Court for the Eastern District of Missouri, requesting a temporary restraining order, preliminary injunction, and permanent injunction against the state from enforcing its gambling laws against the company’s prediction market offerings.
The company cited Missouri’s Sep. 16 cease-and-desist notice demanding Robinhood stop offering its sports events contracts in the state or obtain a Mission Gaming Commission license as the impetus for the lawsuit.
Counsel for Robinhood noted in its lawsuit that Missouri law is preempted by the Commodity Exchange Act (CEA) for regulating commodity futures and swaps trading, pointing to the Third Circuit’s ruling that affirmed a motion granting Kalshi a temporary restraining order and preliminary injunction in New Jersey
