Robinhood Markets has suspended its Super Bowl betting service after receiving a request from the Commodity Futures Trading Commission (CFTC). The suspension affects the NFL championship event contracts for the upcoming Super Bowl LVII, scheduled for February 9, where the Philadelphia Eagles will face the Kansas City Chiefs.
The suspension follows Robinhood’s recent partnership with prediction market Kalshi, which introduced event contracts allowing users to wager on the outcome of the game. Just one day after launching the product, Robinhood announced that it would halt the rollout of the Pro Football Championship market. The service had been made available to around 1% of Robinhood’s customer base, with some customers already placing wagers.
In a statement released on February 4, Robinhood expressed disappointment over the situation, noting that the company had been in regular communication with the CFTC about its plans to offer this product. The decision comes after the CFTC initiated an investigation into Kalshi and Crypto.com regarding their Super Bowl event contracts and whether these offerings comply with derivatives regulations.
Event contracts differ from traditional sports betting in that the odds are determined by a pool of users, rather than being set by bookmakers. Crypto.com has confirmed that it will continue to offer the Super Bowl wagers despite the regulatory probe.
Robinhood’s move into event contracts was a significant step into the betting space, having previously offered similar products, such as betting on the U.S. presidential election outcome in October. Kalshi, the platform behind the event contracts, recently won a legal battle against the CFTC, enabling it to offer U.S.-based users contracts on election results.
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As the CFTC continues its investigation, the future of event contracts, particularly in the context of sports betting, remains uncertain. Robinhood and its partners will have to navigate evolving regulatory landscapes in order to continue offering these innovative financial products.
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