Robinhood Derivatives LLC, a subsidiary of the financial platform Robinhood, has filed lawsuits against gaming commissions in Nevada and New Jersey over their attempts to restrict sports betting contracts. The company claims state officials are aiming to block trading on events like football games and accuses them of imposing unnecessary restrictions. This legal action comes after Robinhood began offering sports-related trading in these states without prior agreements with the Nevada Gaming Control Board or New Jersey Division of Gaming Enforcement, leading to a potential risk of civil penalties and criminal prosecution. The lawsuits are based on Robinhood’s assertion that federal law governing commodity futures and swaps overrides state regulations regarding sports betting. Notably, the company has also highlighted the ongoing legal battles with rival KalshiEx LLC, which the Commodity Futures Trading Commission (CFTC) approved as a contract market nearly five years ago. A previous federal court decision in Maryland showed support for Kalshi, suggesting that its regulatory authority is strong and that blocking it would significantly harm its business. However, another judge in Maryland recently disagreed with this approach, creating a legal discrepancy. This legal clash highlights the complexity of navigating regulatory barriers between federal and state jurisdictions. The outcome of these cases could impact the future of sports betting market regulation in the United States and serve as a precedent for other platforms facing similar challenges.