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Robinhood has removed the ability to bet on the Super Bowl after receiving a formal request from the US Commodity Futures Trading Commission (CFTC).
In a blog post, the exchange revealed that the regulator requested that Robinhood “not permit customers to access sports event contracts." As a result, Robinhood is suspending the rollout of its "Pro Football Championship" market, which was rolled out yesterday to around 1% of customers.
Robinhood is looking into providing the option to close the positions for those who already placed trades or to take them to resolution.
"We are disappointed by this outcome, especially given that we had been in regular communication with the CFTC about our intent and plans to offer this product," Robinhood stated.
"We’ve also taken steps to advocate for balanced regulation in the futures and derivatives markets, including participating directly in a CFTC roundtable, providing written feedback to the CFTC, and generally championing the economic benefits of event contracts."
The move comes just days after the CFTC revealed it was looking into prediction market platform Kalshi's Super Bowl-related event contracts and how they align with derivatives regulations. Robinhood Derivatives had earlier announced a partnership with Kalshi to allow certain traders to bet on the Super Bowl through its platform.
Its prediction market, "Kansas City vs Philadelphia Football," launched on January 24 and has already recorded more than $2.5 million in trading volume.
Kalshi also introduced markets that allow users to bet on which companies will run adverts during the game. These markets have seen almost $1.5 million in wagers.
Blockhead
The CFTC is also looking into Crypto.com's sports wager offerings through contracts. The contracts, listed on Crypto.com’s Chicago-based derivatives exchange, underwent a last-minute submission process, with the exchange notifying the CFTC of its intentions just before Christmas.
Crypto.com's model varies from traditional sports betting firms like DraftKings by pairing traders on either side of the bet while imposing a small fee, rather than setting odds. The exchange also offers nationwide access across the US, which circumvents state-by-state restrictions that govern sports betting.
According to a statement yesterday, the CFTC revealed it will hold a public roundtable in the coming weeks to review this regulatory approach to prediction markets.
Key topics of discussion will include the legality of event contracts under the Commodity Exchange Act, consumer protection concerns, and potential regulatory changes.
Acting Chairman Caroline D. Pham has condemned the commission’s past approach to prediction markets, describing it as a “sinkhole of legal uncertainty” that has stifled innovation.
