Case 2:25-cv-01541-JCM-DJA Document 7 Filed 08/19/25 Page 17 of 31
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Robinhood maintains that offering sports-related event contract trading to its customers in Nevada would not violate any state laws. But in light of the cease-and-desist letter that Kalshi received, as of March 14, 2025, Robinhood chose not to allow Nevada residents to enter positions for sports-related event contracts by implementing a “position closing only” restriction on existing and new Robinhood accounts with a current Nevada address while Kalshi’s lawsuit proceeded in this Court. Mackenzie Decl. ¶ 8. On May 6, 2025, after this Court’s decision in KalshiEx , 2025 WL 1073495, Robinhood met with the Board and explained that it believed it should be able to offer sports-related event contracts trading through Kalshi’s exchange for as long as this Court’s order in KalshiEx remains in effect. Declaration of Kevin J. Orsini in Support of Plaintiff Robinhood’s Motion for a Temporary Restraining Order and Preliminary Injunction (“Orsini Decl.”) ¶ 3. At the conclusion of that meeting, Board employees indicated they did not expect to be able to agree to refrain from enforcement action against Robinhood, even while the KalshiEx order is in place. Id. They stated that they would contact Robinhood if they ultimately reached a different conclusion, and to date, they have not done so. On May 8, 2025, the Board sent Robinhood a letter stating that it would consider Robinhood’s allowing Nevada customers to trade sports-related event contracts to be a violation of Nevada law. Mackenzie Decl. ¶ 9. The Board asserted that if Robinhood were to allow such trading, it would be in violation of the same Nevada laws as those it asserted Kalshi violated as well as Nev. Rev. Stat. § 463.350 (prohibiting persons under the age of 21 from being allowed to place wagers at sports pools). Id. The Board further stated that it would deem a decision by Robinhood to allow such trading to be “willful violations” of Nevada law, and it reserved the Board’s right to “pursue criminal and civil actions” should Robinhood allow its Nevada customers to trade sports-related event contracts. Id. Violations of the Nevada state gaming statutes cited in the Board’s letter are punishable as a “category B felony,” carrying a prison sentence of between one to ten years or a fine of up to $50,000. Nev. Rev. Stat. § 463.360(3).
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