Cases & Investigations
Robinhood Markets, Inc. "Prediction Markets Hub" Consumer Litigation

On April 22, 2026, Wolf Popper LLP filed class action complaint in federal court alleging that Robinhood Markets, Inc. and its subsidiary, Robinhood Derivatives, LLC, operate an unlicensed and unlawful sports gambling platform through their “Prediction Markets Hub.” The plaintiffs allege that Robinhood markets sports event contracts as legitimate financial instruments when, in reality, they functioned as traditional sports wagers. Robinhood partnered with Kalshi, Inc. to offer contracts tied to the outcomes of sporting events, allowing users to speculate on results in exchange for potential payouts. Plaintiffs allege these offerings violate state gambling laws and misled consumers into believing the activity was legal, regulated investing.
 
On July 19, 2026, the United States District Court for the Northern District of California consolidated this action with three related lawsuits and appointed Wolf Popper partner Philip M. Black as Interim Class Counsel to represent the proposed class alongside co-counsel.
 
The consolidated litigation further alleges Robinhood aggressively promoted these products nationwide, including in states where sports betting is restricted, and enabled users to place wagers using brokerage funds—including margin—thereby increasing financial risk. Multiple regulators have reportedly issued warnings or cease-and-desist letters related to similar prediction market activities.
 
Plaintiffs, who claim significant financial losses, seek to recover damages and disgorgement of profits, alleging deceptive practices, unjust enrichment, and violations of consumer protection and gambling laws. Plaintiffs sued on behalf of a nationwide class of consumers and state subclasses. The case raises broader questions about the legality and regulation of emerging “prediction market” platforms.
 
If you lost money trading sports event contracts through Robinhood's Prediction Markets Hub, please contact Wolf Popper LLP today.
If you or someone you know is struggling with a gambling disorder, immediate, confidential help is available 24/7. Call or text the National Problem Gambling Helpline at 1-800-MY-RESET (or 1-800-426-2537).
 

• Phone: Robert Finkel – (212) 451-9620
• Phone: Philip Black – (212) 451-9628
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