Appeals Court Blocks Kalshi Event Contracts on Tribal Lands, Threatening Robinhood's Prediction Market Revenue
HOOD sits 65% above its 52-week low of $63.515.
Summary
The 9th Circuit ruled 3-0 that Kalshi's sports event contracts on two California tribes' lands violate the Indian Gaming Regulatory Act, granting a preliminary injunction. This is Kalshi's second legal setback in under a month, following an August 28 ruling subjecting it to Nevada gaming oversight. Robinhood, which routes customer event contract orders through Kalshi, said it would lose substantial business if the routing is blocked. The ruling adds to the nationwide regulatory dispute over whether prediction markets are gambling or CFTC-regulated derivatives. Robinhood is evaluating legal options, and Kalshi may appeal. The case returns to district court, where a preliminary injunction was previously denied.
At the time of this announcement, HOOD was trading at $104.63 on NASDAQ in the Finance sector, with a market capitalization of approximately $94.1B. The 52-week trading range was $63.52 to $153.86. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.