Robinhood pulls Super Bowl event betting after one day
Robinhood said on Tuesday it is rolling back the event contracts that would let users bet on the result of the Super Bowl clash this weekend, after the online brokerage received a request from the U.S. Commodity Futures Trading Commission.
The halt comes just a day after the launch of the product. Robinhood said it was “disappointed by the outcome.”
“We are heeding their directive to cease offering these contracts despite the fact that the CFTC has not deemed Kalshi’s football championship contracts illegal,” said Lucas Moskowitz, Robinhood’s general counsel.
Representatives for Kalshi did not immediately respond to a Reuters request for comment.
The products would have allowed the company to tap into the betting mania around one of the most iconic sporting events in the country, as Robinhood looks to expand into segments that are gaining traction with retail investors.
“The CFTC has serious concerns about FCMs offering access to their customers to any contract that may not be permissible under the law and will exercise its oversight authority to the fullest extent as appropriate,” a CFTC spokesperson said in an emailed statement to Reuters.