Robinhood freezes sports contracts in Nevada after injunction denied
Financial services and trading company Robinhood has backed away from sports prediction markets in Nevada, at least for the time being.
After federal judge Andrew Gordon denied Robinhood’s request for a temporary injunction against the Nevada Gaming Control Board (NGCB) this week, the futures commission merchant (FCM) has agreed to a temporary respite with the state regulator, pending further court proceedings. It joins Crypto.com in relenting in Nevada after being denied an injunction by Gordon.
“While we do not believe these contracts violate any state laws, beginning on December 1, we will temporarily prohibit customers in Nevada from entering certain new sports-related event contract positions,” a Robinhood spokesperson told SBC Americas. “This allows us to preserve access to the broader Prediction Markets Hub while we work with the court toward a resolution.”
“In light of Judge Gordon’s ruling, the Board and Robinhood have reached an agreement in principle under which Robinhood has agreed to cease offering new sports event contracts in the State of Nevada, pending further proceedings,” wrote NGCB Chairman Mike Dreitzer in a release.
Nevada stop-start continues
After initially complying with a cease-and-desist order sent by the NGCB in the spring by halting sports contracts, Robinhood sued the agency in August after its partner Kalshi, whose sports markets Robinhood uses on its own platform, was granted a preliminary injunction by Judge Gordon.
Robinhood argued that, since the contracts they are offering are provided by Kalshi, the injunction should clear a pathway for them to return to the state.
However, this week, Gordon rescinded Kalshi’s preliminary injunction, citing “new law” and “new facts,” and denied Robinhood’s motion for an injunction in a separate ruling.
“Robinhood apparently made a business decision to again open trades to Nevada customers in August 2025,” Gordon wrote in his Robinhood ruling. “Robinhood thus has in a very real sense created its own harm if shutting down that business injures Robinhood’s reputation.”
“We respectfully disagree with the court’s decision and intend to appeal,” a Robinhood spokesperson told SBC Americas. “As we’ve previously shared, every eligible customer should have access to these markets, which are federally regulated by the CFTC and offered through our CFTC-registered Futures Commission Merchant.”
NGCB vows to aggressively pursue Kalshi
While Robinhood intends to challenge Gordon’s latest decision, Kalshi has already done so, filing an appeal shortly after Gordon dissolved his previous injunction. While first Crypto.com and now Robinhood pulled back on sports predictions in Nevada after judges denied them injunctions against the NGCB’s C&Ds, it seems Kalshi has not done similar despiute Gordon’s latest ruling.
“Unlike both Robinhood and Crypto.com before them, Kalshi has declined to reach an agreement with the Board to stop operating in Nevada pending further proceedings, despite today’s clear legal ruling and the fact that they were provided a very reasonable opportunity to do so,” wrote Dreitzer. “Kalshi instead has asked Judge Gordon to stay his ruling pending its appeal. The Board will vigorously oppose that motion and will continue to expeditiously pursue a path through the courts to stop Kalshi’s unlawful conduct.”
Nevada’s gaming regulator also took the opportunity to reiterate its past directive to all gaming licensees and to emphasize again that it considers offering sports event contracts or certain other event contracts to be illegal wagering if offered without a valid gaming license.
In the wake of the NGCB’s previous statement to that end in October, FanDuel and DraftKings both surrendered any claims to gaming licensure in Nevada as they each prepare to launch sports contracts in non-sports betting states via their respective new prediction market platforms.
https://sbcamericas.com/2025/11/26/robinhood-sports-contracts-nevada/