Robinhood announced Tuesday it is withdrawing its event contracts, which would have allowed users to bet on this weekend’s Super Bowl outcome, following a request from the U.S. Commodity Futures Trading Commission (CFTC).
The CFTC has formally asked Robinhood to prevent customers from accessing sports event contracts. “While we continue to work with the CFTC to understand their concerns, we are suspending the rollout of the Pro Football Championship market,” Robinhood said in a statement.
Robinhood had rolled out the contracts to 1% of its customer base. Those who had already made bets will be given the option to close their positions or let them resolve.
In an emailed statement to Reuters, a CFTC spokesperson emphasized the agency’s concerns about futures commission merchants (FCMs) offering potentially unlawful contracts, asserting that the CFTC will exercise its oversight authority to the fullest extent.
“The CFTC has serious concerns about FCMs offering access to their customers to any contract that may not be permissible under the law,” the spokesperson said. “FCMs have strict duties and obligations pursuant to the CFTC’s customer protection rules and are held to the highest standards to safeguard the public.”
Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors, noted prediction markets and event contracts face complex regulations. Event derivatives trading involves buying and selling contracts that let traders speculate on the outcomes of specific events, including elections, economic data releases, and policy decisions.
He added that the CFTC may be concerned that this could be perceived as an active retail betting platform disguised under an investment umbrella, “especially since sporting events are much more frequent than presidential elections.”
Before the CFTC decision, Robinhood, which boasts nearly 25 million users, had offered contracts on the Super Bowl outcome, allowing users to buy a “Yes” contract with a $1 payout if their chosen team—either the Kansas City Chiefs or the Philadelphia Eagles—won, according to Covers.
The company added that it plans to launch a “comprehensive event contracts platform” later in 2025, in cooperation with the CFTC.
Original article: https://www.yogonet.com/international/news/2025/02/05/94175-robinhood-halts-super-bowl-betting-contracts-after-cftc-order
