Securities
Apr. 24, 2026
Robinhood prediction markets draw suit alleging illegal sports betting
A proposed class action alleges Robinhood's prediction markets are unlawful sports betting, while the company says the federally regulated products are legitimate financial derivatives and vows to fight the claims.
Online trading company Robinhood says its "prediction markets" allow users to buy a stake in contracts on event outcomes, but a federal lawsuit in San Francisco claims the service is effectively an unlicensed sportsbook.
Robinhood called the claims "meritless" in a statement Thursday.
Five plaintiffs, represented by Wolf Popper LLP, filed a proposed class action Wednesday against the fintech company, alleging it circumvents gambling regulations by fram...
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