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Robinhood Derivatives sued Missouri's attorney general and six Missouri Gaming Commission officials in federal court on 9 November. The complaint was filed in the U.S. District Court for the Eastern District of Missouri. It asks the court to stop Missouri from applying its gambling and sports-wagering laws to Robinhood's sports event contracts.
The suit makes a single Supremacy Clause claim. It argues that the Commodity Exchange Act preempts the state laws as applied to CFTC-regulated event contracts. Robinhood seeks a temporary restraining order, preliminary and permanent injunctions, and a declaration that the laws are unconstitutional as applied. These are allegations, and the court has not ruled on them.
Robinhood is a registered futures commission merchant, a broker rather than an exchange. According to the complaint, it routes customers' sports contracts to Kalshi, Rothera and Nadex. Rothera is about 90% owned by a joint venture formed by Robinhood Markets, and Robinhood argues that federal preemption covers a broker that routes trades, not only the venues that execute them, according to RG.
Missouri's pressure also reaches other prediction markets apps. Polymarket US filed its own suit the same day, and Underdog filed one on 8 November. On 6 November, the state's solicitor general told Robinhood the attorney general intends to seek a court order compelling compliance within three days. As of 9 November, the docket showed no restraining order motion and no state response.
Regulation and Courts
Missouri's dispute is part of a wider set of state actions against sports contracts. The latest rulings are tracked separately.
Polymarket US and Underdog also sue Missouri
QCX LLC, which does business as Polymarket US, filed a separate complaint on 9 November in the same court. It names the attorney general and five commission members. The suit alleges preemption under the Commodity Exchange Act and a violation of the Commerce Clause, according to RG. Polymarket US is a separate venue from polymarket.com.
Underdog Exchange DCM filed suit in the Western District of Missouri on 8 November, per RG.
Robinhood restricts Utah customers
Robinhood stopped Utah customers from opening new positions in sports, cultural, election and political event contracts from 2 November. The move followed 14 criminal charges filed against Kalshi on 28 October, according to Yogonet. The CFTC sued Utah on 27 October to block state enforcement against CFTC-registered markets.
Company News
NerdWallet, citing Robinhood's Q3 2026 results, reports that Robinhood's event-contract revenue rose more than 600% year over year to $173 million. Event contracts traded grew more than sevenfold to 16.4 billion. Both figures are company-reported and reached this page secondhand, via NerdWallet.
What to Watch
- 13 November: Nevada's response is due on Robinhood Derivatives' Supreme Court petition, No. 26-338, per the Supreme Court docket.
- 13 November: Coinbase must stop offering sports event contracts in Ohio, according to Predictable.
- Missouri: The state has not yet responded to the complaint. Its solicitor general has said the attorney general plans to seek a compliance order.
- 18 November: The CFTC comment deadline closes on its proposal to define "swap" to include sports, political and other event contracts.
For the market-wide view, see today's prediction market news.