Second consumer suit hits Robinhood over sports event contracts
Robinhood faces a second consumer lawsuit over its sports event contracts, as Matthew Mazza filed suit claiming the company's Prediction Markets Hub operates as an unlicensed gambling scheme. The class action, filed June 10, 2026, in the Northern District of California, alleges Robinhood misleads consumers by portraying sports event contracts as sophisticated investment products when they are functionally equivalent to an unlicensed sportsbook. The suit comes as Robinhood experiments with event contracts and as CME Group pursues ongoing litigation against the company. No details on the nature of Robinhood's experiments or CME's specific claims were disclosed. The new filing adds to a separate California class action challenging the same product line.
Robinhood must now defend two simultaneous lawsuits attacking its event-contract business as illegal gambling in California. An adverse ruling in either case risks forcing termination of the KalshiEX partnership that powers its fastest-growing product line, or a costly redesign to shed the sportsbook label.
Robinhood joins Kalshi as the second platform facing simultaneous state and federal legal pressure over sports event contracts, with both companies now defending consumer suits while navigating CFTC enforcement and CME litigation.