Operator v. state
Robinhood Derivatives, LLC v. Nessel
U.S. District Court for the Western District of Michigan, 1:26-cv-00730
On appeal
Judge Paul L. Maloney denied a preliminary injunction on June 17, 2026; the case is stayed pending the Sixth Circuit appeal (No. 26-1542). Under an agreement announced Sept. 9, 2026, Robinhood halted sports-related contracts in Michigan during the litigation.
The question
Whether the Commodity Exchange Act preempts Michigan gambling or sports-wagering law as applied to event contracts listed on a CFTC-designated contract market.
Robinhood's derivatives arm challenged Michigan's position that its sports contracts require a state license. The court denied preliminary relief, Robinhood appealed the next day, and the district case was stayed in August 2026.
Docket timeline
Michigan Gaming Control Board announces Robinhood has agreed to halt sports-related event contracts in Michigan while the litigation continues.
Source: michigan.gov
Case stayed pending appeal.
Source: dockets.justia.com
Notice of appeal.
Source: dockets.justia.com
Opinion and order denying the preliminary injunction.
Source: dockets.justia.com
Preliminary-injunction motion filed.
Source: dockets.justia.com
Complaint filed.
Source: dockets.justia.com