Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioRobinhood will suspend its Nevada sports-event contract business, effective December 1, 2025, for the duration of any ongoing appeal proceedings.
The development, first reported by gaming attorney Daniel Wallach, marks the latest retreat from Nevada’s crackdown on sports-related event contracts, following Crypto.com’s withdrawal in October and this week’s major court reversal against Kalshi.
Suspension Follows Joint Agreement With Nevada
Wallach posted on X a snapshot of the November 26 court document, Joint Notice of Agreement Concerning Enforcement Pending Appeal.
Under the terms, Robinhood will cease offering new sports-related event contracts to Nevada customers as of December 1. The contracts will remain suspended unless an appellate court grants a stay.
The document states that the suspension lasts until either the District Court or Ninth Circuit “grants Plaintiff an injunction pending appeal staying such Enforcement Actions.”
Also, while suspended, Robinhood must “take reasonable action to explore unwinding longer-duration open sports-related event contracts in Nevada.” Furthermore, it must cooperate with state officials to unwind remaining positions.
The agreement stipulates that if Robinhood complies, regulators “will forbear from bringing any Enforcement Actions” for existing open contracts until the appeals process is completed.
The filing also clarifies that the deal does not waive Nevada’s authority after the appeal concludes. It states: “The agreements contained herein are without prejudice to any party’s rights, obligations, or defenses, including any future Enforcement Actions… following the expiration of any injunction.”
Follows Crypto.com’s Court-Driven Exit and Kalshi’s Setback
Robinhood’s suspension comes approximately a month after Crypto.com ceased offering sports and other event contracts in Nevada.
The move followed an October court ruling that determined event contracts constitute wagering under Nevada law. A formal notice from the Nevada Gaming Control Board later reinforced the finding.
At the beginning of October, U.S. District Judge Andrew P. Gordon denied Crypto.com’s request for a preliminary injunction. The ruling was significant, as Gordon had granted a similar injunction to Kalshi in a separate case against Nevada months earlier.
That ruling effectively dismantled Crypto.com’s preemption theory, leaving the company with no viable path forward.
Days before Robinhood’s suspension, Kalshi suffered a significant setback. Judge Gordon dissolved the preliminary injunction that had shielded the platform since April.
Gordon adopted the reasoning from Crypto.com’s loss. He concluded that Kalshi’s sports-event products “are not swaps” under the Commodity Exchange Act. The judge said the legal landscape had shifted since his April decision.
He concluded that Nevada’s interests outweigh Kalshi’s, with his decision allowing the state to pursue enforcement action against the platform.
Taken together, the Crypto.com and Kalshi decisions have stripped away the federal preemptive legal framework that prediction-market operators relied on to avoid state licensing.
Robinhood’s December 1 pause is the third domino to fall — and another sign that Nevada’s courts are closing the door on federally preempted sports-event contracts.
Robinhood Is Launching a Prediction-Market Product
The timing of the Nevada suspension is notable, as it comes just one day after Robinhood announced that, in partnership with Susquehanna International Group, it had acquired 90% of prediction market exchange LedgerX.
The deal grants Robinhood a CFTC-regulated exchange structure, enabling it to issue prediction contracts directly. Currently, it’s partnering with Kalshi, with the company planning to continue the partnership despite theLedger X acquisition.
A Robinhood spokesperson told CasinoBeats:
“There will be no changes in the short term for Robinhood Derivatives customers. Robinhood has maintained relationships with multiple exchanges since the inception of Prediction Markets (Kalshi and ForecastEx). Robinhood Derivatives plans to continue to partner with multiple DCM/DCO partners, supporting access to a diversity of market venues for our customers.”
The acquisition follows Robinhood’s signal during Q3 earnings that it intends to grow its prediction-market business rather than scale it back, even as Nevada presents fresh obstacles.
In the earnings call, CEO Vlad Tenev said that prediction markets are “really on fire.”
The LedgerX transaction is expected to close in the first quarter of 2026, with operations commencing in the same year.
