Robinhood Sues Missouri to Keep Offering Sports Event Contracts

The broker says only federal regulators can police the trades it routes to Kalshi and other exchanges, after Missouri threatened to take it to court within three days.

Francis Gable

10/11/26 · 2 minNovember 10, 2026 · 2 min read

Robinhood sued Missouri's attorney general and gaming regulators in federal court on Nov. 9, asking a judge to stop the state from treating its sports event contracts as illegal sports betting.

The fight is over who may sell sports bets to Missourians. Licensed sportsbooks there took more than $325 million in wagers in September, according to the Missouri Gaming Commission. Those books need a state license, pay a 10% tax and must keep out anyone under 21.

Robinhood Says Only Federal Regulators Can Police It

The complaint argues that federal commodities law gives the Commodity Futures Trading Commission (CFTC) sole authority over event contracts. These are yes-or-no trades on real-world outcomes, such as who wins a game.

Robinhood does not run an exchange. It is a CFTC-registered broker that sends customer orders to Kalshi, Rothera and Nadex. It argues a state cannot go after the middleman when it cannot go after the exchange.

The company also says a Missouri license is out of reach. The two stand-alone mobile licenses went to DraftKings and Circa Sports. Robinhood wants a temporary restraining order and injunctions; the court has not ruled on its claims.

Missouri Set a Three-Day Clock

Attorney General Catherine Hanaway sent cease-and-desist letters to six companies in September.

"Companies cannot repackage sports bets as 'event contracts' to avoid Missouri law."

Hanaway said that when the letters went out. FairGambling covered Missouri's orders to six prediction markets at the time.

On Nov. 6, according to the complaint, Missouri's solicitor general said Hanaway "now intends to seek a judicial order compelling compliance with state law in at least three days."

Polymarket US filed its own suit the same day. Four exchanges, including Kalshi and Underdog, had already sued. The open question is whether Hanaway files the threatened enforcement action before a judge rules on Robinhood's request to block it.

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