Robinhood's Super Bowl Bets Suspended by CFTC

The U.S. Commodity Futures Trading Commission (CFTC) has requested that Robinhood Derivatives, LLC (RHD) halt its Super Bowl betting contracts, leading to their suspension less than a day after launch. The move comes as regulators express growing concerns about event-based trading products, particularly those tied to major sporting events.

On Feb. 4, Robinhood pulled the plug on its Super Bowl betting contracts, following a formal request from the CFTC. The product, launched in partnership with prediction market platform Kalshi, allowed users to bet on the outcome of the Feb. 9 Super Bowl matchup between the Philadelphia Eagles and the Kansas City Chiefs. Only about 1% of Robinhood’s customers had access to the contracts before they were suspended.

Those who had already placed bets will be able to either close their positions or see them through to settlement, but no new trades will be allowed. Robinhood expressed disappointment with the outcome, stating that it had been in regular communication with the CFTC about its plans.

The CFTC’s intervention comes amid broader regulatory scrutiny of event-based contracts. Just two days prior, the agency launched an inquiry into Crypto.com and Kalshi, questioning whether their own Super Bowl contracts complied with derivatives laws. This latest development may not mark the end of Robinhood’s push into the event-based trading space, as the company has indicated plans to launch a more expansive event contracts platform later this year.