Can I use Robinhood prediction markets in Massachusetts?

Yes. Robinhood's help page lists no Massachusetts limit, and the state has promised not to act while Kalshi's appeal runs. You must be 18 and approved for event contracts.

Is Robinhood banned in Massachusetts?

No. Massachusetts has not sued Robinhood or ordered it to stop. Its stock and crypto trading are not part of any dispute.

Why did Robinhood sue Massachusetts?

To head off the kind of case the state brought against Kalshi, whose contracts it sells. A judge twice called the suit premature, and Robinhood appealed.

How old do you have to be to use Robinhood prediction markets in Massachusetts?

18, with a Social Security number and US residency. Massachusetts sportsbooks require 21.

Is sports betting legal in Massachusetts?

Yes. In-person betting began on January 31, 2023, and online betting on March 10, 2023. You must be 21, and seven online sportsbooks are live.

Do I pay tax on Robinhood prediction market profits in Massachusetts?

Yes. Massachusetts taxes most income at 5% and short-term capital gains at 8.5%. Which rate applies to event contracts is not settled, so ask a tax adviser.

Is Kalshi legal in Massachusetts?

Yes, for now. A court order against Kalshi's sports contracts is on hold. The SJC heard Kalshi's appeal on May 4, 2026, and has not ruled.

Is this legal advice?

No. It summarizes public rulings and filings, each cited. For a decision that matters, ask a lawyer licensed in Massachusetts.

Is Robinhood Legal in Massachusetts?

Q: Does the Kalshi injunction affect Robinhood?

Not yet, because it is stayed. If it takes effect, it bars Kalshi from executing sports contracts for anyone in Massachusetts. That would likely reach Kalshi contracts bought through Robinhood.

Robinhood in Massachusetts

Contested for sports contracts, with no restriction in force.

Sports contracts: Available, but contested
Other contracts: Available
Regulator: CFTC: offers event contracts through Robinhood Derivatives, a CFTC-registered futures commission merchant, on Kalshi, ForecastEx, CDNA and Rothera
Rulings and actions in Massachusetts: 1 on record, listed in the timeline
Legal sports betting: In person since January 31, 2023; online since March 10, 2023
Robinhood's appeal: First Circuit No. 26-1257, fully briefed
Federal appeals court: First Circuit: has not ruled on the question
Last change: August 13, 2026

Each entry on this page links the ruling or report it rests on. Nothing here is legal advice.

Open Robinhood

Why Robinhood is legal in Massachusetts, for now

Robinhood is not an exchange. Its broker, Robinhood Derivatives, is registered with the CFTC and routes orders to exchanges such as Kalshi.

Massachusetts has never ordered it to stop. Instead, Robinhood sued the state first, on September 15, 2025.

It moved three days after the attorney general sued Kalshi. That complaint noted Kalshi's contracts are also sold on Robinhood.

The state has since promised in writing not to act against Robinhood while Kalshi's appeal runs.

So your account works as usual. The real question is what happens after the state's highest court rules.

What you can trade on Robinhood from Massachusetts

Robinhood lists sports, politics, economics, crypto, culture and weather. You need a Robinhood account, a Social Security number and a second approval for event contracts.

Its help page names only two states with limits, Maryland and Nevada. Massachusetts is not one of them.

Many of its sports contracts are Kalshi's. The Kalshi injunction, if it takes effect, bars Kalshi from executing sports contracts for anyone in Massachusetts.

That would likely reach Kalshi contracts bought through Robinhood too. Robinhood also routes some contracts to other exchanges, which the order does not name.

Robinhood checks where you are, not just your address. Near a restricted state, a “stricter area” error can block a trade.

How Robinhood's prediction market works for Massachusetts traders

Every contract is a yes-or-no question. It pays $1 if the answer is yes and nothing if it is no.

The price is the market's odds. A contract at 60¢ means traders put the chance at about 60%.

Say the Red Sox are 60¢ to win tonight on a Kalshi-listed contract. You buy 100 contracts for $60.

Robinhood's commission is 10% × price × (1 − price), capped at 1¢ a contract. Here that is $1.00.

Kalshi adds its own 1¢ a contract, another $1.00. Your total cost is $62.

If the Red Sox win, you collect $100, a $38 profit. If they lose, you are out $62.

Gold members pay a 5% rate, but the 1¢ cap applies at this price either way. Selling early costs the fees again.

Our Robinhood fees guide has the full schedule.

What Massachusetts has said about Robinhood

Very little, directly. The attorney general has not sued Robinhood or ordered it to stop.

Her Kalshi complaint does name it. It says Kalshi's contracts are “also available on Robinhood.”

In court, the state promised to hold off. On February 6, 2026, it agreed not to act over Robinhood's Kalshi or ForecastEx sports contracts for now.

That promise lasts until Kalshi's injunction is in force, not stayed, and the Massachusetts appeals courts have ruled on it.

The Gaming Commission agreed not to ask the attorney general to sue before then.

There is a safety valve. If those conditions drag past 18 months, the attorney general may withdraw the promise on 30 days' notice.

Robinhood's lawsuit against Massachusetts, explained

The case is Robinhood Derivatives, LLC v. Campbell, No. 1:25-cv-12578, before Judge Richard G. Stearns in Boston.

Robinhood argued the Commodity Exchange Act preempts the state's gaming laws for its sports contracts. It never got a ruling on that question.

On November 13, 2025, the judge dismissed the case for lack of ripeness. The state had not acted against Robinhood, so there was nothing yet to decide.

Robinhood came back after adding ForecastEx, a second exchange, for sports contracts. The judge reopened the case on January 8, 2026.

Then Robinhood stopped offering sports contracts through ForecastEx. On March 13, 2026, the judge dismissed the case again.

Robinhood appealed the same day. The First Circuit case, No. 26-1257, was fully briefed on August 13, and no argument date is set.

Customers are suing too. Smith v. Kalshi Inc., a class action filed April 22, 2026, seeks losses back under an old state gambling law.

It names Kalshi and Robinhood. Robinhood wants the claims against it sent to arbitration.

What could change Robinhood's status in Massachusetts

The SJC ruling on Kalshi comes first. If the court upholds the injunction, the state's promise to Robinhood runs out.

The attorney general could then act against Robinhood's sports contracts. Kalshi-listed contracts would be hit first, because the injunction binds Kalshi itself.

The First Circuit could also rule. It covers Massachusetts, Rhode Island, Maine, New Hampshire and Puerto Rico, and has never decided the question.

Robinhood has already lost elsewhere. The Ninth Circuit ruled against it in Nevada on August 28, 2026. Robinhood has asked the Supreme Court to review that ruling.

Our litigation tracker follows each case.

Robinhood in Massachusetts: timeline

Every change to Robinhood's position in Massachusetts, newest first. Each entry links the filing or order behind it.

Aug 13, 2026

Robinhood filed its reply brief, completing briefing in its First Circuit appeal, No. 26-1257. Source

Apr 22, 2026

A customer class action, Smith v. Kalshi Inc., was filed against Kalshi and Robinhood in Suffolk Superior Court. Source

Mar 13, 2026

Judge Richard G. Stearns dismissed Robinhood's suit a second time. Robinhood appealed to the First Circuit. Source

Feb 6, 2026

The attorney general agreed not to act against Robinhood's sports contracts until Kalshi's appeal is decided. Source

Jan 8, 2026

The court reopened Robinhood's case after it added ForecastEx as a second exchange for sports contracts. Source

Nov 13, 2025

The court dismissed Robinhood's suit for lack of ripeness, since the state had not acted against it. Source

Sep 26, 2025

The attorney general and the Gaming Commission first agreed not to enforce against Robinhood for now. Source

Sep 15, 2025

Robinhood sued Massachusetts officials in federal court, three days after the state sued Kalshi. Source

How Robinhood compares to sports betting in Massachusetts

Massachusetts legalized sports betting on August 10, 2022. Seven online sportsbooks are live, and bettors must be 21.

Those sportsbooks pay 20% of their online revenue in tax and answer to the Gaming Commission.

Robinhood holds no state license. Its broker answers to the CFTC and the National Futures Association.

Robinhood says event contracts “are not bets.” The state says a sports contract is a sports wager, whatever the label.

Age is another gap. Robinhood takes event-contract traders from 18, while Massachusetts sportsbooks start at 21.

Other prediction market apps in Massachusetts

Kalshi, whose contracts Robinhood sells, is the state's main target. Its sports contracts stay live while the SJC decides. See Kalshi in Massachusetts.

The sportsbook brands keep sports out of their prediction apps here, after a November 2025 Gaming Commission letter.

Here is where each app we rank stands in the state. See Polymarket in Massachusetts and prediction markets in Massachusetts for more.

Every app we rank, in ranking order, and where it stands in Massachusetts.
App	Status in Massachusetts	More
Kalshi	Contested for sports contracts, with no restriction in force	Is Kalshi legal in Massachusetts?
Gemini Predictions	Available, sports included	Gemini Predictions review
Polymarket US	Contested for sports contracts, with no restriction in force	Is Polymarket legal in Massachusetts?
OG	Available, but not for sports contracts	OG review
Interactive Brokers	Available; it lists no sports contracts anywhere	Interactive Brokers review
ProphetX	Available, sports included	ProphetX review
Coinbase	Available, sports included	Coinbase review
Webull	Available, sports included	Webull review
Novig	Available, sports included	Novig review
DraftKings Predictions	Available, but not for sports contracts	DraftKings Predictions review
Fanatics Markets	Not available	Fanatics Markets review
FanDuel Predicts	Available, but not for sports contracts	FanDuel Predicts review
PrizePicks	Available, but not for sports contracts	PrizePicks review
Underdog Predict	Available, sports included	Underdog Predict review