Robinhood Markets has suspended Super Bowl betting after a request from the Commodity Futures Trading Commission (CFTC). The regulator asked the company to stop customer access to event contracts tied to the NFL championship game.
The suspension came just a day after Robinhood introduced the product in partnership with prediction market Kalshi. The offering allowed users to place wagers on the outcome of the Philadelphia Eagles vs. Kansas City Chiefs game scheduled for Feb. 9.
Robinhood announced on Feb. 4 that it will temporarily stop rolling out its Pro Football Championship market. It added that it is working with the CFTC in an attempt to comprehend and react to concerns that have been raised.
According to its press statement, CFTC specifically ordered Robinhood Derivatives, LLC (RHD) to cease providing its customers with access to sports event contracts. The offering had only gone out to about 1% of its base when the suspension took effect.
Robinhood plans to introduce two options for investors who placed bets in advance when trading ceased. Customers can opt to close out, or have them settle naturally. Users have been assured that the company will take the case and inform them when the information comes out.
Robinhood expresses disappointment over regulatory decision
Robinhood expressed disappointment over the regulatory intervention. It emphasized that continuous discussions had been held with the CFTC regarding its plans to introduce the product. The company also highlighted its ongoing efforts to push for balanced regulations in the futures and derivatives markets.
Robinhood has actively engaged with regulators, participating in a CFTC roundtable and offering written feedback. It has publicly championed the economic value of event contracts, too. Despite such efforts, the CFTC ruling forced the company to drop its offering for sports gambling.
The halt is a blow to Robinhood’s expansion aspirations for its financial offerings. It has been looking for new sources of expansion, such as new products, in addition to stocks and cryptocurrency trading. Event contracts were a source for generating additional activity and users to its platform.
Robinhood has not yet disclosed a timeline for when it will resume rolling out the feature. For now, users with access to the feature will have to patiently wait for an update.
