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Robinhood sues Washington officials over gambling rules for prediction markets

Regulation

Robinhood Derivatives filed a federal lawsuit in Washington on 30 March, seeking to stop the state from applying gambling laws to its prediction-market business. The company argues that federal commodities law governs its event contracts because it is regulated by the Commodity Futures Trading Commission; Washington has separately sued Kalshi over its contracts.

The lawsuit tests whether federal commodities law prevents Washington from applying gambling laws to event contracts.

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Regulation

CFTC sues New York officials over prediction markets

The Commodity Futures Trading Commission and the federal government filed a lawsuit against New York officials on 24 April, seeking a permanent injunction, according to the report. The CFTC argues that federal authority over event contracts takes precedence over state gambling laws; New York Governor Kathy Hochul and Attorney General Letitia James said the state would defend its laws in court. The CFTC also intervened in a Massachusetts court case, but the report gives no further detail on that action.

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