Wolf Popper LLP Files Class Action Complaint Against Robinhood Markets, Inc. and its subsidiary, Robinhood Derivatives, LLC, Over Unlicensed and Unlawful Sports Gambling Through Their “Prediction Markets Hub.”
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.
The suit further claims 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 wagered on sports events on Robinhood, please contact Wolf Popper LLP today.