Are Robinhood Prediction Markets Legal? States & Regulation (2026)

Yes, in most states. Robinhood offers event contracts through Robinhood Derivatives, LLC, a CFTC-registered futures broker, and they trade on CFTC-regulated exchanges. Maryland is restricted, sports contracts are off in Nevada, and Michigan residents can no longer open sports positions.

How Robinhood is regulated

Robinhood doesn’t run the markets itself. Robinhood Derivatives, LLC, a CFTC-registered futures broker and NFA member, sends your orders to regulated exchanges: Kalshi, ForecastEx, Rothera (an exchange Robinhood controls with Susquehanna, which the CFTC lists as designated) and Nadex, with some football trades now going to Crypto.com and OG.com.

State restrictions

Maryland: Robinhood’s restrictions page says Maryland residents can’t trade event contracts, while its overview page says only sports contracts are blocked. We treat Maryland as unavailable until Robinhood clears this up.
Nevada: no new sports contracts since December 1, 2025. Robinhood also lost its appeal against Nevada in the 9th Circuit in August 2026 and has asked the Supreme Court to hear the case.
Michigan: Robinhood agreed in September 2026 to stop sports contracts, and residents can’t open new sports positions from September 9, 2026.

Tribes in California, Wisconsin and New Mexico have also sued Robinhood and Kalshi over sports contracts. Our legal guide covers the wider fight.

Age

You need to be 18 and a US resident with a Robinhood brokerage account and an approved Robinhood Derivatives account.

Frequently asked questions

Which states can't use Robinhood prediction markets?

Robinhood's restrictions page says Maryland residents can't trade event contracts. Its overview page says only sports are blocked there, so the two disagree. Nevada residents can't open new sports contracts, and since September 9, 2026 neither can Michigan residents.

Who regulates Robinhood's event contracts?

Robinhood Derivatives, LLC is registered with the CFTC as a futures commission merchant and is an NFA member. The contracts trade on CFTC-regulated exchanges such as Kalshi, ForecastEx and Rothera.