Case 2:25-cv-01541-APG-DJA Document 32 Filed 09/30/25 Page 3 of 21
a mechanism for tribes and states to negotiate compacts governing Class III gaming, such as sports
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betting, subject to federal approval. See 25 U.S.C. §§ 2702, 2703(8), 2710(d)(3).
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IGRA is intended to balance state, federal, and tribal interests. Chicken Ranch Rancheria
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of Me-Wuk Indians v. California , 42 F.4th 1024, 1032 (9th Cir. 2022). Some states have
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negotiated compacts wherein tribes are the exclusive operators of certain types of gaming within
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the state. E.g. , Artichoke Joe’s v. Norton , 353 F.3d 712, 718 (9th Cir. 2003). This delicate balance
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of federal, tribal, and state interests has allowed tribes to generate substantial gaming revenue,
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which directly funds important tribal government services that benefit tribal citizens.
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Robinhood Derivatives, LLC (“Robinhood”) unlawfully and unfairly entered into the
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gaming market, which adversely impacts tribal gaming revenue and infringes upon the benefit of
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tribes’ bargained-for compacts. Additionally, by offering its so-called sports event contracts under
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the guise of commodity trading pursuant to the Commodity Exchange Act (“CEA”), Robinhood
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impedes tribes’ inherent sovereign right to regulate gaming activity on Indian lands. Contrary to
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Robinhood’s arguments: (1) the CEA does not exclusively govern its gaming-related sports event
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contracts; (2) such contracts are expressly prohibited by the CEA and Commodity Futures Trading
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Commission’s (“CFTC”) own regulations; and (3) federal, state, and tribal gaming laws (including
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IGRA), therefore, apply to and govern its sports wagering activity.
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Because Robinhood has failed to establish a likelihood of success on the merits, this Court
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should deny its motion for preliminary injunction.
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I.
IGRA Governs Robinhood’s Sports Betting Conduct on Indian Lands
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A. Robinhood’s sports event contracts constitute “Class III Gaming” under
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IGRA
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IGRA advances the longstanding federal policy of promoting and sustaining tribal self-
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sufficiency. See 25 U.S.C. § 2701(4). In this regard, IGRA has been incredibly successful. 2 The revenue generated by tribal gaming supports thousands of jobs in hundreds of communities, and
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provides critical funding to state and local governments through revenue-sharing agreements, tax
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