Key Takeaways:
- Robinhood suspends Super Bowl betting after a CFTC request, pausing a new event contract product launched with Kalshi.
- The move follows increased regulatory scrutiny of sports-related event contracts, with Crypto.com and Kalshi also under investigation.
- Robinhood had previously entered the event contracts market with presidential election betting, following Kalshi’s legal win against the CFTC.
Robinhood has suspended its Super Bowl betting feature just one day after launch, following a request from the Commodity Futures Trading Commission (CFTC) to limit customer access to event contracts.
The betting product, introduced in partnership with prediction market platform Kalshi, allowed users to wager on the outcome of the Super Bowl between the Philadelphia Eagles and Kansas City Chiefs on February 9.
The Commodity Futures Trading Commission (CFTC) has formally requested that Robinhood Derivatives, LLC (RHD) “not permit customers to access” sports event contracts.
— Robinhood Comms (@RobinhoodComms) February 4, 2025
While we continue to work with the CFTC to understand their concerns, we are suspending the rollout of the Pro…
In a statement on February 4, Robinhood announced it would pause the rollout while working with the CFTC to address regulatory concerns.
The product had been available to only about 1% of customers, some of whom had already placed trades.
These users will have the option to either close their positions or see them through to resolution.
Robinhood expressed disappointment over the suspension, stating that it had been in ongoing discussions with the CFTC before launching the product.
The move comes amid increased regulatory scrutiny of sports-related event contracts, with the CFTC also investigating Crypto.com and Kalshi over their Super Bowl betting offerings.
Unlike traditional sports betting, event contracts rely on market-based pricing rather than fixed odds set by bookmakers.
Despite regulatory pressure, Crypto.com has stated it will continue offering these wagers.
Robinhood had previously entered the event contract market in October with U.S. election-based trades.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.
Check Efe out on:
