The state of Massachusetts has filed a quick in opposition to monetary companies firm Robinhood submitting its personal movement.
After Robinhood filed a movement for a preliminary injunction, Massachusetts filed an opposing transient in response. The corporate had asked a judge last month to grant it an injunction towards the state our bodies to dam them “from imposing preempted Massachusetts regulation towards Robinhood for its facilitation of transactions involving sports-related occasion contracts.”
Now, Massachusetts has formally responded, arguing that Robinhood’s declare that sports activities betting has been legalized nationwide.
In a preview of its anticipated authorized argument towards Kalshi, Massachusetts has filed its transient in opposition to Robinhood's movement for preliminary injunction. Right here is its argument towards federal preemption: pic.twitter.com/Bebt2iTa5y
— Daniel Wallach (@WALLACHLEGAL) October 11, 2025
“Robinhood’s smoke-and-mirrors arguments in any other case fail upon inspection, as two federal district courts have lately held,” reads the submitting, as reported by sports betting lawyer David Wallach.
Robinhood isn’t an remoted case
The recent Crypto.com decision was referenced in assist of the state’s argument, the place the corporate was blocked from persevering with to run sports activities bets in Nevada. That is a part of a a lot wider push to manage sports activities occasion contracts that search to emulate sports activities betting.
Whereas Kalshi has been working with regulatory our bodies to launch sports-related companies, the precedent doesn’t essentially prolong to all related firms, as evidenced by Crypto.com and now doubtlessly once more by Robinhood. Massachusetts state our bodies argue that there’s repeated authorized reinforcement “going again many years” that states have the correct and duty to find out what types of playing are allowed.
“Robinhood argues that these legal guidelines have been impliedly repealed when, below its narrative, Congress expanded the CEA to incorporate swaps in 2010,” reads the submitting. “However this Courtroom doesn’t suggest repeal of a federal regulation, not to mention a number of federal legal guidelines.”
With Massachusetts gearing as much as launch a similar legal battle against Kalshi, this movement towards Robinhood presents an instance of the sorts of arguments the state is making ready to launch to protect towards what it deems to be unlicensed sports activities betting. This comes after a wider crackdown on unlicensed gaming across the state.
Featured picture: Robinhood
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