Robinhood has temporarily suspended Super Bowl betting following a request from the Commodities and Futures Trading Commission (CFTC).
Product Launch and Suspension
The halt comes just a day after Robinhood launched the betting product for the Super Bowl game between the Philadelphia Eagles and Kansas City Chiefs on February 9. The platform, launched in partnership with prediction market Kalishi, rolled out the product to about 1% of its customers.
Robinhood's Response and Further Steps
Robinhood has expressed disappointment over the suspension, noting that it had been in regular communication with the CFTC about its intentions and plans for the product. Some customers had already placed bets, and the company is now working with the CFTC to better understand their concerns.
CFTC Investigation Context
The pause comes amid reports of the CFTC probing Crypto.com and Kalshi regarding their offerings of Super Bowl event contracts and their compliance with derivatives regulations. Unlike traditional betting, event contract odds are drawn from a pool of users, instead of bookmakers.
This case highlights the complexity of regulating event contracts and the necessity of close cooperation with regulatory bodies.
