On May 15, the Governor of Iowa, Kim Reynolds, signed SF 2289 into law, effectively reforming state gambling rules and introducing restrictions against sweepstakes casinos.
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Robinhood files federal lawsuit against Washington AG
Just days after Washington Attorney General Nick Brown brought a case against Kalshi, Robinhood has filed a federal lawsuit against the Attorney General and the gambling commission in an effort to stop the state from enforcing gambling laws on prediction markets.
The case was filed on March 30, 2026, in the U.S. District Court in Tacoma, based on the claim that federal laws override state laws when it comes to prediction market platforms. Robinhood has stressed that its operations are regulated by the Commodity Futures Trading Commission (CFTC), so they can’t be treated as gambling.
A Robinhood spokesperson has shared with GeekWire:
“We believe in the power of prediction markets and the important role they play at the intersection of trading, news, economics, politics, culture, and sports. This step, consistent with our past actions in other jurisdictions, aims to preserve access for customers in Washington.”
The operator also added that it didn’t have a choice and had to file the lawsuit to protect the business and its customers.
The case was brought by Robinhood Derivatives, and law firms Davis Wright Tremaine in Seattle and Cravath, and Swaine & Moore in New York are representing the operator in the legal battle.
For context, Washington’s position is that prediction markets are equal to illegal gambling and that they should be banned.
After more than 6 months in a waitlist period, Polymarket launched an official iOS app for U.S. users on May 12, 2026.Polymarket first launched in the United States in...
