Case 2:25-cv-01541-APG-DJA Document 32 Filed 09/30/25 Page 10 of 21
provision’s only legislative history.” (emphasis added)). For the same reason, Robinhood’s sports
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event contracts also violate various federal and state laws (as evidenced by the impetus for this
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litigation). Robinhood allows users as young as 18 years old to purchase its sports event contracts
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anywhere nationwide, including on Indian lands. The purchase and sale of these sports event
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contracts amount to speculative sports wagers, which constitutes gaming activity. Robinhood’s
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sports event contracts do not comply with the requirements for gaming on Indian lands under
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IGRA. See 25 U.S.C. § 2710(d)(1). Robinhood’s sports event contracts therefore involve
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unlawful activity under federal law. 9 For these reasons, Robinhood’s sports event contracts are not lawful transactions under the
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exclusive jurisdiction of the CFTC. Therefore, the CEA does not preempt or otherwise conflict
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with IGRA, and IGRA governs all sports event contracts offered on Indian lands.
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3)
Robinhood’s sports event contracts do not qualify as “swaps” or swaps based on “excluded commodities”
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Robinhood’s sports event contracts do not qualify as “swaps” or swaps based on “excluded
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commodities” and, therefore, are not subject to the CFTC’s exclusive jurisdiction. Robinhood
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presumes to offer its sports event contracts as “swaps” that are based on “excluded commodities.”
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Under the CEA, a “swap” is defined in relevant part as:
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[A]ny agreement, contract, or transaction … that provides for any purchase, sale, payment, or delivery … that is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence.
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9 In addition to IGRA, Robinhood’s sports event contracts also violate other federal laws, including the Wire Act, 18 U.S.C. § 1084, and UIGEA, 31 U.S.C. § 5361. In denying Kalshi’s motion for preliminary injunction, the Maryland District Court ruled that Kalshi’s proposed interpretation of the CEA “would necessarily entail at least a partial implied repeal of the IGRA and the Wire Act.” See Martin , 2025 WL at *10. Furthermore, Kalshi’s self-certifications are themselves violations of the CEA. Specifically, Kalshi’s self-certifications are “written certification[s] that the new contract … complies with [the CEA] (including regulations under [the CEA]).” 7 U.S.C. § 7a-2(c)(1). Because the sports event contracts do not comply with the CEA or the CFTC’s regulations—because they involve gaming— Kalshi’s self-certifications (upon which Robinhood relies to list and trade its sports event contracts) attesting otherwise are incorrect and therefore invalid.
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