The state of Massachusetts has filed a brief in opposition to financial services company Robinhood filing its own motion.
After Robinhood filed a motion for a preliminary injunction, Massachusetts filed an opposing brief in response. The company had asked a judge last month to grant it an injunction against the state bodies to block them “from enforcing preempted Massachusetts law against Robinhood for its facilitation of transactions involving sports-related event contracts.”
Now, Massachusetts has formally responded, arguing that Robinhood’s claim that sports betting has been legalized nationwide.
In a preview of its anticipated legal argument against Kalshi, Massachusetts has filed its brief in opposition to Robinhood's motion for preliminary injunction. Here is its argument against federal preemption: pic.twitter.com/Bebt2iTa5y
— Daniel Wallach (@WALLACHLEGAL) October 11, 2025
“Robinhood’s smoke-and-mirrors arguments otherwise fail upon inspection, as two federal district courts have recently held,” reads the filing, as reported by sports betting lawyer David Wallach.
Robinhood is not an isolated case
The recent Crypto.com decision was referenced in support of the state’s argument, where the company was blocked from continuing to run sports bets in Nevada. This is part of a much wider push to regulate sports event contracts that seek to emulate sports betting.
While Kalshi has been working with regulatory bodies to launch sports-related services, the precedent doesn’t necessarily extend to all similar companies, as evidenced by Crypto.com and now potentially again by Robinhood. Massachusetts state bodies argue that there is repeated legal reinforcement “going back decades” that states have the right and responsibility to determine what forms of gambling are allowed.
“Robinhood argues that these laws were impliedly repealed when, under its narrative, Congress expanded the CEA to include swaps in 2010,” reads the filing. “But this Court does not imply repeal of a federal law, let alone multiple federal laws.”
With Massachusetts gearing up to launch a similar legal battle against Kalshi, this motion against Robinhood offers an example of the kinds of arguments the state is preparing to launch to guard against what it deems to be unlicensed sports betting. This comes after a wider crackdown on unlicensed gaming across the state.
Featured image: Robinhood
