Robinhood Stops Super Bowl Contracts After CFTC Request
Just a day after Robinhood announced that it had partnered with Kalshi to offer Super Bowl LIX event contracts, the company has now said that it will no longer be doing so following a request from the Commodity Futures Trading Commission (CFTC).
LISTEN TO THIS ARTICLE:The CFTC intervened following the previous announcement from Robinhood. It instructed the company to block customer access to the contracts and Robinhood confirmed the regulatory request in a statement, acknowledging that it had been directed to “not permit customers to access” such trading options.
Although disappointed by the decision, Robinhood stated it would comply while continuing discussions with the Commission. The platform noted that only about 1% of its users had gained access to the product. For those who had already placed trades, Robinhood will provide options to either close their positions or see them through to resolution.
The Commodity Futures Trading Commission (CFTC) has formally requested that Robinhood Derivatives, LLC (RHD) “not permit customers to access” sports event contracts.
— Robinhood Comms (@RobinhoodComms) February 4, 2025
While we continue to work with the CFTC to understand their concerns, we are suspending the rollout of the Pro…
Robinhood to Continue Working with Regulators
Robinhood’s leadership was caught off guard by the CFTC’s request, as the company had previously informed the regulator of its intentions and maintained ongoing communication. The platform has consistently called for fair regulations regarding event trading contracts, a market category that falls under futures and derivatives.
As a member of the National Futures Association, Robinhood said that it is willing to continue collaborating with the CFTC. The company has participated in regulatory discussions, provided written input, and supported balanced oversight in the derivatives market. In a statement, Robinhood reiterated its commitment to working with regulators as it develops a more expansive event contracts platform later this year.
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. 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.
More Business News
Federal Scrutiny of Event Contracts Grows
Robinhood has been exploring expansion into the sports betting sector since December, after its successful foray into US Presidential Election trading. The platform boasted a 95% customer retention rate for election-related contracts as of October 2024.
Meanwhile, federal scrutiny of sports-related event contracts goes beyond Robinhood. Crypto.com, which had announced plans to offer football futures contracts, is also facing regulatory review. In January, the CFTC revealed that Crypto.com’s offering would be subject to a 90-day evaluation period, which suggests there is a broader regulatory focus on event-based trading.
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