Robinhood Markets announced that its subsidiary, Robinhood Derivatives, LLC, received a cease-and-desist letter from the Ohio Casino Control Commission on October 2, instructing it to halt the offering of sports-related event contracts within the state.

According to the filing, “On October 26, 2026, RHD agreed to cease offering new sports-related event contracts in Ohio by November 2, 2026, in return for the Commission’s agreement to refrain from enforcing its state gaming laws while RHD and other prediction-market operators appeal in the Sixth Circuit and the Supreme Court of the United States.”

On the same date, the Commission issued cease-and-desist letters to ten prediction markets and brokers, including Robinhood Derivatives, and subsequently directed its licensed operators to avoid business with unlicensed event-contract providers.

Polymarket’s U.S. entity has initiated legal action against Ohio officials concerning the state’s licensing regulations. The filing also indicates that Robinhood has reached a comparable agreement with Michigan, agreeing to cease the offering of sports-related event contracts and to terminate existing contracts, in exchange for the state holding off on enforcement during ongoing appeals.

More broadly, it mentions that various contract markets and futures commission merchants, “including Robinhood,” have coordinated with state regulators to suspend the introduction of certain new event contracts in specific states pending litigation. This agreement follows a ruling on September 25 by a panel of three judges from the 6th U.S. Circuit Court of Appeals in the case of KalshiEX LLC v. Schuler, which was decided alongside a related case from Tennessee.

The court, through an opinion delivered by Judge Julia Smith Gibbons, with concurrence from Judges Eric L. Clay and Rachel Bloomekatz, concluded that Kalshi had failed to demonstrate that its sports event contracts align with the federal definition of a “swap” as outlined in the Commodity Exchange Act.