Robinhood is pushing for regulatory clarity on event contracts, including those tied to sports, after suspending its Super Bowl-related betting product earlier this month at the request of U.S. regulators, CEO Vlad Tenev said on Wednesday.
The Menlo Park-based trading platform, known for its role in democratizing stock trading, had briefly offered sports event contracts in partnership with prediction market Kalshi before halting the service on Feb. 4.
“As with any new innovative asset class, we’re pushing the boundaries here, and there’s not regulatory clarity across all of it yet, in particular, sports,” Tenev said during the company’s earnings call. “But we believe in it, and we’re going to be a leader.”
Robinhood has positioned itself as a major player in the prediction market industry, which allows users to trade contracts based on event outcomes such as elections, economic indicators, and potentially sports. Unlike traditional sportsbooks such as DraftKings and FanDuel, these platforms offer federally regulated markets where traders can buy and sell event contracts rather than betting on point spreads or moneylines.
“I think prediction markets are the future,” Tenev said. “I think they’re the future not just as an active trading asset, but also news and information. And Robinhood’s going to be right there leading the way.”
The company plans to launch a comprehensive events platform later this year, expanding beyond politics and economics. Robinhood customers already traded more than half a billion contracts tied to the 2024 U.S. presidential election, Tenev noted.
Robinhood’s foray into event contracts comes amid ongoing scrutiny from the U.S. Commodity Futures Trading Commission (CFTC). The agency, which regulates derivatives markets, formally requested Robinhood block customer access to sports-related event contracts despite ongoing discussions between the two sides.
The regulatory landscape for event contracts remains uncertain. While firms like Kalshi and Crypto.com have introduced sports-related prediction markets, the CFTC has previously objected to such offerings. Kalshi is currently engaged in legal proceedings over its election markets, and the agency has not yet clarified its stance on sports-related contracts.
The recent nomination of former CFTC commissioner Brian Quintenz to chair the agency by Donald Trump could signal a more favorable regulatory environment for prediction markets. Quintenz, who joined Kalshi’s board in 2021, has long been a proponent of financial innovation in derivatives markets.
Despite the regulatory hurdles, Robinhood remains bullish on its expansion into prediction markets. The company sees event contracts as a natural extension of its platform, particularly for its younger user base interested in sports and speculative trading. “A lot of our customers, who index on Millennial and Gen Z, are interested in sports in general,” Tenev said in December.
While Robinhood has not disclosed a timeline for the reintroduction of sports-related contracts, Tenev emphasized that the company will continue advocating for clearer regulations to support the growth of prediction markets.
“We’re going to push for regulatory clarity industry-wide,” he said. “You should expect us to not just offer it, but continue to drive this forward.”
Original article: https://www.yogonet.com/international/news/2025/02/18/95419-robinhood-seeks-regulatory-clarity-after-sports-betting-suspension
