# Robinhood Prediction Markets News: Latest Update – 22 October 2026 **Author:** CoinStats AI **Published:** October 22, 2026 at 08:27 --- > **TLDR** > • Ohio governor announced on 20 October the state will sue prediction market operators ignoring cease-and-desist orders. > • Ohio Casino Control Commission sent 10 letters on 2 October citing the Sixth Circuit's 25 September ruling. > • CFTC proposed on 9 October defining sports, politics, culture and weather event contracts as swaps. > • SEC approved Cboe's KPI binary options tied to 23 U.S.-listed companies in a 13 October order. > • Rothera processed over 3.5 billion contracts since launch, with FIFA World Cup markets driving about 93% of volume. ## Top Story Ohio's governor said on 20 October that the state will sue prediction market operators that do not comply with cease-and-desist orders. Robinhood Derivatives is one of the firms that received them. The Ohio Casino Control Commission sent 10 letters on 2 October, citing the Sixth Circuit's 25 September ruling and giving recipients until 16 October to confirm compliance. The letters reach several [prediction markets](https://coinstats.app/prediction-markets/apps/) apps that offer sports contracts, including Robinhood's hub. Robinhood's Ohio notice also reasserts a 31 March 2025 commission order to stop sports event contracts in the state. The Ohio Capital Journal reported on 20 October that the largest platforms had not shut down their sports trading sections in Ohio. Most were still live and unchanged at the close of business on 17 October. Interim Attorney General Andy Wilson said the state's position is that "the law is on our side." Basis Desk reported on 22 October that Wilson is preparing lawsuits. No filing against Robinhood is confirmed in the sources reviewed. Polymarket US, operated by QCX LLC, sued Ohio officials in the Southern District of Ohio on 16 October. That venue is separate from polymarket.com. No court has ruled on the state's position. For case updates, see [the latest rulings](https://coinstats.app/prediction-markets/legal/tracker/) and [prediction markets in Ohio](https://coinstats.app/prediction-markets/legal/oh/). ## Regulation and Courts ### Missouri deadline passes without a Robinhood suit Missouri Attorney General Catherine Hanaway sent cease-and-desist letters on 16 and 17 September to six firms, including Robinhood Derivatives. Compliance was due by 16 October. On that date, Crypto.com's exchange and Novig filed suits seeking to block the state. Robinhood, Kalshi, Polymarket and Underdog had not filed comparable suits by the following weekend, according to [Crowdfund Insider](https://www.crowdfundinsider.com/2026/10/319462-crypto-com-novig-seek-court-protection-for-sports-contracts-as-missouri-deadlines-expire/). [RotoWire](https://www.rotowire.com/prediction-markets/legal-timeline) describes Robinhood's position as "ongoing discussions" with the attorney general. ### CFTC proposes wider swap definition and excludes sportsbook wagers On 9 October the CFTC proposed defining "swap" to include event contracts on sports, politics, culture and weather. The [proposal was published in the Federal Register on 19 October](https://www.federalregister.gov/documents/2026/10/19/2026-21377/further-definition-of-swap-inclusions), with comments due 18 November. The same day, the agency adopted an [interim final rule, effective 19 October](https://www.federalregister.gov/documents/2026/10/19/2026-21376/further-definition-of-swap-to-exclude-casino-style-gambling-products), stating that sportsbook and casino wagers are not swaps. The proposal is not law, and its effect on the court disputes over event contracts is disputed. ## Company News **KPI contracts.** The SEC approved Cboe Global Markets' plan to list binary options tied to key performance indicators of 23 U.S.-listed companies, in an order dated 13 October. Each contract pays $1 if the prediction is correct and nothing if it is wrong. Robinhood is expected to be the first retail broker to offer them. The contracts settle on figures in companies' SEC filings, such as Coinbase's trading volume and Robinhood's customer count. They clear through Cboe's clearinghouse, not through Kalshi, ForecastEX or Rothera. Trading has not started, and [Cboe Clear U.S. is still waiting on temporary registration](https://cryptobriefing.com/sec-approves-cboe-kpi-prediction-options). No launch date has been set. **Rothera and volume.** Rothera, the CFTC-licensed exchange Robinhood built with Susquehanna, has processed more than 3.5 billion contracts since launch. FIFA World Cup markets drove about 93% of that volume. CEO Vlad Tenev said the prediction markets unit traded roughly 2.5 billion event contracts in October, more than in all of the third quarter. This is a company statement, not an independently verified figure. ## What to Watch - **Ohio lawsuits:** The attorney general has not set a filing date. Robinhood's status depends on whether it complies with the 2 October letter. - **28 October:** A [Fed rate decision market](https://robinhood.com/us/en/prediction-markets/economics/events/fed-rate-decision-in-october-2026-oct-28-2026/) on Robinhood's hub resolves. - **Late October:** Robinhood's third-quarter earnings are expected, according to [Investor's Business Daily](https://www.investors.com/news/robinhood-stock-cboe-kpi-options-sec-approval-prediction-markets/). No date is confirmed. - **13 November:** Nevada's response is due to Robinhood's Supreme Court petition, No. 26-338. - **18 November:** The CFTC comment deadline on the proposed swap definition closes. For market-wide coverage, see [today's prediction market news](https://coinstats.app/ai/a/prediction-markets-news-today). **Sources:** - [Ohio Casino Control Commission cease-and-desist letters (2 Oct 2026)](https://yourradioplace.com/wp-content/uploads/2026/10/10.2.26_Combined_C_amp_D_letters.pdf) - [Ohio Capital Journal: Prediction market platforms ignoring Ohio's legal threats (20 Oct 2026)](https://ohiocapitaljournal.com/2026/10/20/prediction-market-platforms-ignoring-ohios-legal-threats) - [Sports Betting Dime: Ohio governor says action forthcoming against prediction market operators (20 Oct 2026)](https://www.sportsbettingdime.com/news/industry/ohio-governor-says-action-forthcoming-against-prediction-market-operators) - [Basis Desk: Ohio governor warns lawsuits loom for prediction market operators (22 Oct 2026)](https://basisdesk.news/news/ohio-governor-lawsuits-prediction-markets-polymarket) - [Crowdfund Insider: Crypto.com, Novig seek court protection as Missouri deadlines expire (21 Oct 2026)](https://www.crowdfundinsider.com/2026/10/319462-crypto-com-novig-seek-court-protection-for-sports-contracts-as-missouri-deadlines-expire/) - [RotoWire: Prediction Markets Legal Timeline 2026](https://www.rotowire.com/prediction-markets/legal-timeline) - [Federal Register: Further Definition of "Swap", Inclusions (19 Oct 2026)](https://www.federalregister.gov/documents/2026/10/19/2026-21377/further-definition-of-swap-inclusions) - [Federal Register: Further Definition of "Swap" to Exclude Casino-Style Gambling Products (19 Oct 2026)](https://www.federalregister.gov/documents/2026/10/19/2026-21376/further-definition-of-swap-to-exclude-casino-style-gambling-products) - [SEC Order Approving Binary KPI Options, Release 34-106659 (13 Oct 2026)](https://www.sec.gov/files/rules/sro/cboe/2026/34-106659.pdf) - [Cboe Global Markets: Cboe and Robinhood Announce Planned Launch of New KPI Contracts (30 Sep 2026)](https://ir.cboe.com/news/news-details/2026/Cboe-and-Robinhood-Announce-Planned-Launch-of-New-KPI-Contracts-Further-Expanding-Prediction-Market-Offerings/default.aspx) - [Crypto Briefing: SEC approves Cboe prediction market options tied to Coinbase, Nvidia, Tesla metrics (14 Oct 2026)](https://cryptobriefing.com/sec-approves-cboe-kpi-prediction-options) - [Startup Fortune: Robinhood's prediction markets business is now outgrowing crypto trading (21 Oct 2026)](https://startupfortune.com/robinhoods-prediction-markets-business-is-now-outgrowing-crypto-trading) - [Investor's Business Daily: Robinhood, Cboe Win Approval For Prediction Options (15 Oct 2026)](https://www.investors.com/news/robinhood-stock-cboe-kpi-options-sec-approval-prediction-markets/) - [Robinhood: Fed rate decision in October 2026 market](https://robinhood.com/us/en/prediction-markets/economics/events/fed-rate-decision-in-october-2026-oct-28-2026/) --- ## Related Questions - What is Robinhood's official response to the Ohio cease-and-desist letter? - Has Robinhood confirmed when it will launch the SEC-approved KPI binary options? - How much of Rothera's 3.5 billion contracts were sports-related volume? --- *This article was generated by [CoinStats AI](https://coinstats.app/ai)*