Robinhood Sues Washington State Over Kalshi Lawsuit

Robinhood claims 'there is a concrete and imminent threat that Washington will file an enforcement action against Robinhood as it did against Kalshi.'

Apr. 2, 2026 at 12:28am

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Just days after Washington sued the prediction market operator Kalshi in state court, Robinhood sued Washington in Federal court. Robinhood claims there is a 'concrete and imminent threat' that Washington will take enforcement action against Robinhood as it did against Kalshi.

Why it matters

This case highlights the ongoing legal battles between state regulators and prediction market operators over the legality of their services. Robinhood's lawsuit against Washington mirrors a similar lawsuit it filed against Massachusetts after that state sued Kalshi, indicating a pattern emerging in how these cases are playing out across the country.

The details

In its recent lawsuit filed with the U.S. District Court for the Western District of Washington at Tacoma, the financial services company Robinhood claimed 'there is a concrete and imminent threat that Washington will file an enforcement action against Robinhood as it did against Kalshi.' Last year, Robinhood partnered with Kalshi, enabling it to offer prediction market event contracts. As a result, when Washington filed its lawsuit against Kalshi on Friday, Robinhood was likely to become collateral damage should the Evergreen State prevail.

  • On Friday, Washington State Attorney General Nick Brown filed a lawsuit suing prediction market operator Kalshi for illegal gambling.
  • On Monday, Robinhood sued Washington State in Federal court, seeking a permanent injunction.

The players

Robinhood

A financial services company that recently partnered with prediction market operator Kalshi.

Washington State

The state government that filed a lawsuit against prediction market operator Kalshi for illegal gambling.

Kalshi

A prediction market operator that was sued by Washington State for illegal gambling.

Nick Brown

The Washington State Attorney General who filed the lawsuit against Kalshi.

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What they’re saying

“there is a concrete and imminent threat that Washington will file an enforcement action against Robinhood as it did against Kalshi.”

— Robinhood

What’s next

The judge in the case will decide whether to grant Robinhood's request for a permanent injunction to prevent Washington State from taking enforcement action against the company.

The takeaway

This case highlights the ongoing legal battles between state regulators and prediction market operators over the legality of their services. As more states take action against these companies, it is likely that the issue of state gambling laws and federal preemption will eventually make its way to the U.S. Supreme Court.