Federal District Court Dismisses Robinhood Sports-Related Event Contracts Suit on Procedural Grounds

A judge for the U.S. District Court for the District of Massachusetts dismissed a lawsuit brought by Robinhood Derivatives, LLC ("Robinhood") seeking a preliminary injunction to prevent the Massachusetts attorney general and state gaming regulators from enforcing state gambling laws against its sports-related event contracts.

In a brief docket entry, the court denied Robinhood’s motion for a preliminary injunction and granted the defendants’ motion to dismiss. The court had briefly reopened the case after Robinhood disclosed that it had begun offering sports-related prediction contracts through its partner, ForecastEx.

The judge explained that the matter was reopened solely to address the ForecastEx offerings. Once Robinhood represented that those contracts had ceased, the court concluded that the same jurisdictional issues that previously required dismissal were again present.

The court had initially dismissed the case in November 2025 on ripeness grounds, finding that Robinhood had not shown an immediate or concrete threat that Massachusetts officials would enforce state gambling laws against it. Because Robinhood was no longer facilitating the sports-related contracts, the court determined that any potential enforcement remains contingent on future events rather than a present legal controversy, making judicial review premature.