Robinhood has decided to halt its newly introduced Super Bowl betting contracts just one day after launch, following a request from the U.S. Commodity Futures Trading Commission (CFTC). The online brokerage had rolled out the product in partnership with derivatives exchange Kalshi, but regulatory concerns quickly led to its suspension.
The CFTC’s request comes amid increasing scrutiny of event-based trading products, particularly those linked to major sporting events. In response to the regulator’s directive, Robinhood announced it would no longer allow users to trade the contracts, though those who had already placed bets would have the option to either close their positions or hold them to resolution.
Lucas Moskowitz, general counsel for Robinhood, expressed disappointment with the regulatory outcome, stating, “We are heeding their directive to cease offering these contracts despite the fact that the CFTC has not deemed Kalshi’s football championship contracts illegal.”
A spokesperson for the CFTC, cited by Reuters, reiterated the agency’s stance, explaining that the regulator is committed to overseeing financial contracts that may not align with existing laws. “The CFTC has serious concerns about FCMs offering access to their customers to any contract that may not be permissible under the law and will exercise its oversight authority to the fullest extent as appropriate.”
While Robinhood has maintained that it engaged in ongoing discussions with the CFTC prior to launching the contracts, the agency’s decision underscores broader regulatory uncertainty surrounding event-based trading markets.
Super Bowl betting market and competition
Robinhood had initially rolled out the Super Bowl contracts to a limited group of users, offering them the chance to wager on the winner of the championship game. Users could purchase a contract with a potential payout of $1 if their selected team won. The move was part of Robinhood’s broader strategy to expand its derivatives offerings and attract retail investors interested in speculative trading.
While Robinhood is one of the most well-known platforms to explore event-based contracts, it is not the first to do so. Kalshi had previously secured the ability to offer political betting markets after a U.S. court overturned the CFTC’s opposition to its election contracts. Similarly, Crypto.com has entered the event-based trading market, launching its own Super Bowl outcome contracts using cryptocurrency as the primary medium of exchange.
Despite these developments, the legal framework governing event-based contracts remains uncertain. The CFTC has recently initiated inquiries into both Crypto.com and Kalshi to assess whether their Super Bowl-related offerings comply with derivatives laws.
Future plans for event contracts
Robinhood has indicated that this regulatory hurdle does not mark the end of its ambitions in event-based trading. The company plans to introduce a more expansive event contracts platform later in 2025, signaling continued interest in the growing market segment.
A company statement emphasized Robinhood’s commitment to innovation: “Robinhood is at the forefront of transforming futures and derivatives markets, bringing innovation, accessibility, and simplicity to retail investors.”