Robinhood Pauses Nevada Sports Prediction Markets After Judge Denys Temporary Injunction

Robinhood has halted new sports prediction markets in Nevada after a federal judge denied its request for a temporary injunction against the Nevada Gaming Control Board (NGCB). The company reached an agreement with the regulator to suspend the contracts pending the outcome of litigation. 

The pause, beginning Dec. 1, mirrors Crypto.com's recent decision to step back after a similar ruling. NGCB Chairman Mike Dreitzer stated that the agreement followed Judge Andrew Gordon's decision, which determined that the company must cease offering sports event contracts in the state pending further proceedings.

The dispute stems from a cease-and-desist order issued earlier this year. Robinhood initially complied, but then resumed offering sports markets in August after its partner, Kalshi, secured a preliminary injunction. 

Robinhood argued that Kalshi's injunction should also allow its own services to continue in Nevada, as the contracts flowed through Kalshi's exchange. Judge Gordon reversed Kalshi's injunction this week, citing new information, and separately denied Robinhood's motion. 

In his ruling, he noted that Robinhood reopened its Nevada sports betting access by choice and therefore bore responsibility for any resulting harm to its reputation. Robinhood said it disagreed with the decision and intended to appeal.

Not all prediction market apps have stopped operations in the state.

While Robinhood and Crypto.com have agreed to step back, Kalshi has not, prompting the NGCB to pledge further action. Dreitzer said Kalshi declined to suspend operations despite the ruling and instead sought a stay during its appeal. 

The Board reiterated that unlicensed sports event contracts constitute illegal wagering under Nevada law. Following earlier NGCB guidance in October, FanDuel and DraftKings withdrew their Nevada licenses as they prepare national prediction-market products.

Ledgerx acquisition

The pause in Nevada comes as Robinhood expands its position in federally regulated prediction markets through a planned acquisition of derivatives exchange and clearinghouse LedgerX. 

The deal, made in partnership with Susquehanna International Group, would give Robinhood full control over MIAXdx, the platform currently operating under Miami International Holdings, which will retain a minority stake.

The purchase marks a shift for Robinhood, which used to rely on third-party exchanges like Kalshi. Now, it will control the trading infrastructure.  

Robinhood would handle settlement and customer funds directly and collect all transaction fees if it owned the exchange and clearinghouse. In the current setup, Robinhood uses Kalshi to process user bets and keeps only a small fee.

Robinhood's size means that its planned exchange will have a sizable user base. In the third quarter of FY2025, the company reported having 27 million funded accounts. It also said it had more than 10 million active users each month.

The company expects the LedgerX transaction to close in the first quarter of 2026, with a product rollout targeted for the same year. Because LedgerX is already registered with the Commodity Futures Trading Commission, Robinhood can begin the expansion with the necessary regulatory framework in place, rather than building a new exchange from the ground up.