The state of Massachusetts has filed a formal brief opposing Robinhood’s motion for a preliminary injunction. It’s the latest salvo in the growing legal dispute over prediction markets and sports-related event contracts.
Robinhood had asked a judge to block Massachusetts regulators from enforcing state laws that it argues are preempted by federal statutes. The company claims its event-based offerings, which allow users to trade on sports outcomes, fall under federal commodities law rather than state gambling regulations.
Massachusetts rejected that argument, stating that Robinhood’s assertion of nationwide legalization of sports betting is unfounded.
According to the suit, Robinhood’s justification was “smoke and mirrors,” citing federal court decisions that uphold state jurisdiction over gaming regulation.
ALSO READ: New Casinos in the U.S. vs EU: Key Considerations
Additionally, the state cited a related case in which Crypto.com was barred from placing sports wagers in Nevada. Although Robinhood had claimed that such regulations have been repealed after 2010, the brief also cited earlier rulings that held that states have the authority to unilaterally regulate what constitutes permissible gaming.
In Ohio, Kalshi files a lawsuit.
There has been a confrontation with Kalshi in Ohio, which is comparable to the litigation against Robinhood in Massachusetts. The company has filed lawsuits against the state attorney general and the Ohio Casino Control Commission, claiming that the state abused its power by shutting down its operations and threatening its competitors.
The case, which was filed on October 7, claims that the business was affected by the allegedly unlawful enforcement.
Kalshi contends that the Commodity Futures Trading Commission (CFTC), not state gaming authorities, is in charge of its event-based markets, which include those connected to sporting events. The business argues that Ohio’s warnings to licensed sportsbooks and cease-and-desist letter essentially prevented it from reaching users and partners.
Courtesy: https://www.covers.com, https://www.casino.org, https://pechanga.net
The Nevada Gaming Control Board (NGCB), with the subject line "Sports Event Contracts Are Wagers,"…
Despite having previously given Kalshi a similar concession, Nevada District Court Judge Andrew Gordon has…
Illinois Governor JB Pritzker disclosed over $1.4M in gambling winnings as his income tripled in…
In a recent brief filed as part of its appeal to prevent its contracts from…
Same-game parlays, or SGPs, have transformed the way fans bet on baseball. Instead of picking…
When you open your sportsbook app, odds might look purely mathematical, shaped by team stats,…