Robinhood Derivatives, LLC v. Flaherty

Consent injunction bars enforcement; case stayed3d Cir.Platform v. State

Docket last checked September 25, 2026. Snapshot — not legal advice.

As of September 25, 2026, prediction markets are operating in New Jersey — a court currently shields platforms from state enforcement, at least preliminarily and pending appeal. New Jersey status and cases →

Overview

Robinhood Derivatives sued New Jersey’s gaming regulators on August 19, 2025 and moved for a restraining order. It never needed a hearing. Three days later Judge Edward S. Kiel entered a consent order granting preliminary relief: the state is enjoined from civil or criminal enforcement against Robinhood over sports event contracts traded on Kalshi’s exchange until the court rules again after the Third Circuit decides Kalshi’s own New Jersey appeal, and the case is otherwise administratively stayed.

The Third Circuit ruled for Kalshi in April 2026, and on May 5, 2026 the court entered a further consent order extending the preliminary relief. The case has no ruling of its own on preemption: the protection Robinhood has is borrowed from Kalshi’s case and covers contracts traded on Kalshi. (Terms read from the consent order, ECF No. 22.)

Changes

Logged September 25, 2026

Timeline

August 19, 2025

Robinhood Derivatives sues the New Jersey Division of Gaming Enforcement, its interim director and the Attorney General, and moves for a restraining order and preliminary injunction.

August 22, 2025

Judge Kiel enters a consent order enjoining enforcement against Robinhood over Kalshi-traded sports contracts pending the Third Circuit’s decision in Kalshi’s appeal, and stays the case.

May 5, 2026

After the Third Circuit’s April 2026 ruling for Kalshi, the court enters a consent order extending the preliminary relief.

What's next: Stayed. The relief tracks Kalshi v. Flaherty, where New Jersey has petitioned the Supreme Court; any change there is the likely trigger for further orders here.

Parties

Plaintiffs

  • Robinhood Derivatives, LLC

Defendants

  • Mary Jo Flaherty (Interim Director, New Jersey Division of Gaming Enforcement)
  • New Jersey Division of Gaming Enforcement
  • Matthew J. Platkin (New Jersey Attorney General)
This page is informational, not legal advice. Nearly every entry in this tracker is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.