Financial services company Robinhood has filed a federal lawsuit against Washington state to prevent state gambling laws from being enforced against prediction market platforms. The company argues that federal law preempts Washington's gambling statutes as applied to event contracts traded on exchanges regulated by the Commodity Futures Trading Commission. The lawsuit was filed by Robinhood's Chicago-based subsidiary, Robinhood Derivatives. The state argues that these event contracts, which allow users to bet on the outcome of real-world activities, constitute illegal gambling. The case is part of a national wave of litigation over prediction markets, with Kalshi currently fighting over 20 civil lawsuits and Arizona's AG filing criminal charges.