HOOD Suspends Super Bowl Betting Contracts at CFTC's Request
Robinhood has suspended trading in Super Bowl betting contracts following a directive from the U.S. Commodity Futures Trading Commission (CFTC).
"We are complying with the CFTC's directive despite the fact that the agency has not deemed Kalshi's football championship contracts illegal," said Robinhood's general counsel, Lucas Moskowitz.
The platform had recently launched the contracts to allow U.S. customers to wager on the Super Bowl outcome, tapping into the betting fervor surrounding the event. Robinhood had rolled out the product to a limited number of users, who will now have the option to close their positions or let them expire.
Event derivatives trading involves speculating on the outcomes of specific events, such as elections, economic data releases, and policy decisions. These products have gained popularity despite being relatively new and considered high-risk.