Overview

• Filed in U.S. District Court in Boston on Monday, Robinhood Derivatives asks to enjoin the attorney general and the Gaming Commission from applying state sports-betting rules to its facilitation of trades on Kalshi’s exchange.
• The move follows Attorney General Andrea Joy Campbell’s Sept. 12 Suffolk Superior Court lawsuit accusing Kalshi of running unlicensed online sports betting in Massachusetts.
• Campbell seeks preliminary and permanent injunctions plus damages and civil penalties, arguing Kalshi’s binary event contracts function like moneyline, point spread, and over/under wagers under state law.
• The complaint cites scale and safeguards concerns, alleging more than $1 billion in sports-related activity in the first five months, users as young as 18, and that during a late-winter period Kalshi earned more from sports wagers than DraftKings or FanDuel.
• Massachusetts’ case references roughly $1 billion in Kalshi contracts routed through Robinhood in Q2, the state securities regulator has opened a separate probe into Robinhood’s sports contracts, and split court rulings in Nevada, New Jersey, and Maryland underscore a wider preemption fight.