As it announced on August 19, 2025, Robinhood is now in the prediction markets game for pro and college football. This update—available through the Robinhood app—allows sports fans to trade on the outcomes of football games which, according to the company, differs from sports betting in that customers (buyers and sellers) rather than Robinhood, set the price and adjust and exit their positions throughout the football game. This news comes as Robinhood is in litigation against both New Jersey and Nevada over cease-and-desist letters those states sent to stop Robinhood from trading sports-related event contracts in their jurisdictions.
Meanwhile, the Florida Attorney General announced in July that it is investigating a Robinhood entity, Robinhood Crypto, LLC, for suspected violations of Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”) which makes it unlawful for businesses to compete unfairly or deceptively in Florida.
Specifically, Attorney General Uthmeier announced his belief that “crypto is a vital component of Florida’s financial future” and part of President Donald Trump’s agenda to make America “stronger and wealthier.” According to the Attorney General, Robinhood claims it is the best bargain for customers, which the state believes is untrue. Instead, the government alleges that “trading on Robinhood is actually more expensive than trading on competing platforms.” To determine if its concerns about Robinhood are true, the state issued a subpoena to Robinhood under FDUTPA, seeking various categories of documents, including the following:
- Documents sufficient to show the advertisements, including ads on social media and search engines, advertising the platform’s cryptocurrency trading;
- All documents relating to Robinhood’s claim that users “trade crypto at the lowest cost on average;”
- All documents relating to the claim that users “get the most crypto for your money with Robinhood Crypto;”
- Documents sufficient to show all disclosures made to users relating to the user fees, commissions, spread markups, transaction rebates; or PFOF practices in cryptocurrency trades;
- Documents sufficient to show all training materials provided to personnel relating to how to discuss cryptocurrency trading costs and/or fees with users;
- Documents sufficient to show how the platform determines pricing for transaction rebates or PFOF practices with market makers;
- Documents sufficient to show the entities with whom Robinhood entered into PFOF or transaction rebate agreements;
- All documents relating to any of Robinhood’s competitors’ costs to trade cryptocurrency, including but not limited to comparative pricing analyses of other cryptocurrency exchanges;
- Communications sent to or received from users in Florida relating to the cost and/or fees of buying and selling cryptocurrency on Robinhood;
- Documents sufficient to show the number of users in Florida that used the platform in 2024; and
- For all trades by users in Florida trading on the platform in 2024.
But what gives the Florida AG the power to subpoena Robinhood, which is a California business, and what are the penalties for a violation?
The FDUTPA Subpoena Power and Penalties
Section 501.206, Florida Statutes, authorizes the Florida Attorney General to subpoena witnesses and evidence whenever the government “has reason to believe” a person or company is engaging in deceptive or unfair practices. And even though Robinhood is not a Florida company, it falls within the jurisdiction of the statute because it does business in Florida. However, FDUTPA makes clear that if the information sought “is located outside the state,” Robinhood “may make it available . . . at the place where it is located.”
FDUTPA litigation regarding both subpoena enforcement and substantive allegations can be extensive—and expensive. The statute authorized the state to sue for injunctions, declaratory relief, and damages, including victim restitution and civil penalties of up to $10,000 for each violation (up to $15,000 where a violation concerns a senior citizen, disabled person, or military). The statute further allows the state to seek compensation for its attorneys’ fees and costs if it wins.
So, what is Robinhood or a similarly situated company to do?
Robinhood’s Likely Response to the Subpoena and Press
Robinhood is a publicly traded company with litigation and regulatory experience. Its response to the Attorney General’s subpoena likely included the following steps: (1) engaging representation by a national law firm, as well as Florida-based representation, (2) preserving relevant material; (3) investigating the merit of the attorney general’s claims by reviewing documents, communications, policies, contracts, and data related to its Florida customers; and (4) calling the Attorney General’s office to start a conversation about where to go from here. Often (but not always)—in regulatory and civil investigations—there is an opportunity for companies like Robinhood to explain their side of the story, present mitigating evidence, and seek an agreed resolution. If those discussions fail, Robinhood may find itself in court in Florida too.