Robinhood Markets has withdrawn its Super Bowl betting product after the Commodities and Futures Trading Commission (CFTC) asked it to cease providing event contracts for the game.
The move follows the launch of the product on Wednesday in partnership with prediction market Kalshi where users can bet on the result of the Super Bowl between the Philadelphia Eagles and Kansas City Chiefs on February 9.
On February 4 the company stated that it would suspend the expansion of the Pro Football Championship market while it deals with the CFTC. While Robinhood had only launched the product to approximately 1% of its customers, some of them had placed trades before the suspension.Â
Robinhood said it was disappointed over the move, saying that it had been in constant communication with the CFTC regarding its plans to launch the product.
This comes after the CFTC said it is probing Crypto.com and Kalshi over their Super Bowl event contracts, whether they meet derivatives regulations.
Event contracts are different from betting where users can bet on the outcome created from a pool of users not a bookmaker. However, Crypto.com has since come out to affirm that it will go ahead and offer Super Bowl wagers.
Robinhood’s foray into event contracts started in October with contracts-for-difference based on the US presidential election after a legal win for Kalshi, which enables users to bet on the outcomes of the election in the US.
Also Read: CME Group Futures Now Available on Robinhood
