Robinhood Derivatives LLC has taken the Nevada Gaming Commission to Court to prevent the regulator from enforcing the law against the company.

The lawsuit was initiated on August 19, 2025 at the Nevada District Court.

On March 4, 2025, the Nevada Gaming Control Board sent Kalshi a cease-and-desist letter threatening to prohibit Kalshi from facilitating any trading of sports-related event contracts in Nevada. The Board asserted that Nevada state gaming laws governed these transactions.

Robinhood maintains that offering Kalshi’s sports-related event contracts to its customers in Nevada would not violate any state laws. But in light of the cease-and-desist letter that Kalshi received, as of March 14, 2025, Robinhood has not allowed Nevada residents to enter positions for sports-related event contracts.

Kalshi took a different approach, filing a lawsuit seeking declaratory and injunctive relief from this Court on the basis that, as applied to trading on its CFTC-designated contract market, Nevada law is preempted by the Commodity Exchange Act’s (“CEA”) comprehensive federal framework for regulating commodity futures and swaps trading.

Kalshi has won preliminary relief—the Court granted Kalshi’s motions for a preliminary injunction, holding that Kalshi demonstrated a likelihood of success on the merits concerning its argument that Nevada law is preempted, that it will likely suffer irreparable harm without relief, and that the balance of interests favor injunction.

Despite these rulings, the Board continues to threaten to enforce preempted Nevada law against Robinhood, even though the Board is currently enjoined by this Court from doing so against Kalshi with respect to the same transactions.

On May 6, 2025, Robinhood met with the Board and explained that it believed it should be able to offer sports-related event contracts trading through Kalshi’s exchange for as long as this Court’s order in KalshiEx remains in effect.

At the conclusion of that meeting, Board employees indicated they did not expect to be able to agree to refrain from enforcement action against Robinhood, even while the KalshiEx order is in place. They stated that they would contact Robinhood if they ultimately reached a different conclusion, and to date, they have not done so.

On May 8, 2025, the Board sent Robinhood a letter, from the Board’s Las Vegas office, stating that it would consider Robinhood’s allowing Nevada customers to trade sports-related event contracts to be a violation of Nevada law.

On May 19, 2025, Robinhood met with the Board again and sought an agreement from the State of Nevada to permit Robinhood at least temporarily to offer its customers the same sports-related event contracts that are traded on Kalshi’s exchange. The Board declined Robinhood’s proposal.

In light of this Court’s decision in KalshiEx’s case and the Board’s refusal to reach an agreement with Robinhood to mitigate what the company sees as “the substantial ongoing economic and reputational harms Robinhood continues to suffer in the marketplace”, Robinhood has activated its Nevada customers’ access to sports-related event contract trading.

As a result, Robinhood now faces an immediate threat of civil penalties and criminal prosecution from the Board, along with the attendant reputational harm that any enforcement proceeding by the Board would cause.

Robinhood alleges that it has no choice but to file a lawsuit to protect its customers and its business.

Robinhood requests that the Court enjoin Defendants from enforcing preempted Nevada law against Robinhood for its facilitation of transactions involving sports-related event contracts.

The defendants in this lawsuit are:

• Mike Dreitzer is sued in his official capacity as the Chairman of the Nevada Gaming Control Board.
• George Assad is sued in his official capacity as a Member of the Nevada Gaming Control Board.
• Chandeni K. Sendall is sued in her official capacity as a Member of the Nevada Gaming Control Board.
• Nevada Gaming Control Board, a subdivision of the State of Nevada, is sued as the independent state agency that (i) promulgates rules and regulations for the licensing and operation of gaming in the state of Nevada, (ii) establishes the rules and regulations for all tax reports that gaming licensees submit to the state, and (iii) enforces state laws and regulations governing gaming through its six divisions, namely Administration, Audit, Enforcement, Investigations, Tax and License, and Technology.
• Jennifer Togliatti is sued in her official capacity as Chair of the Nevada Gaming Commission.
• Rosa Solis-Rainey is sued in her official capacity as a Member of the Nevada Gaming Commission.
• Brian Krolicki is sued in his official capacity as a Member of the Nevada Gaming Commission.
• George Markantonis is sued in his official capacity as a Member of the Nevada Gaming Commission.
• Abbi Silver is sued in her official capacity as a Member of the Nevada Gaming Commission.
• Nevada Gaming Commission, a subdivision of the State of Nevada, is sued as the independent state agency that acts on the recommendations of the Nevada Gaming Control Board on issues of licensing and work permit appeals. The Board has final authority on all licensing matters, retaining the power to approve, restrict, limit, condition, deny, revoke or suspend any gaming license.
• Aaron D. Ford is sued in his official capacity as Attorney General of Nevada.

Robinhood has been facing pressure over its sports-related event contracts. In July 2025, three federally recognized Indian Tribes, the Blue Lake Rancheria, the Chicken Ranch Rancheria of Me-Wuk Indians, and the Picayune Rancheria of the Chukchansi Indians filed a lawsuit against Kalshi and Robinhood for illegal sports gambling.

There is a similar lawsuit brought by Ohio Gambling Recovery LLC against Robinhood. The plaintiff seeks recovery of gambling losses.