Robinhood Halts Super Bowl Betting Following CFTC Request

Robinhood Markets has suspended its Super Bowl betting product after receiving a request from the Commodity Futures Trading Commission (CFTC), just a day after launching the feature.

The offering, developed in partnership with prediction market Kalshi, allowed users to place wagers on the outcome of the Feb. 9 Super Bowl between the Philadelphia Eagles and the Kansas City Chiefs.

However, on 4 February 2025, Robinhood announced it would pause the rollout of its Pro Football Championship market as it works with the CFTC to address regulatory concerns.

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Robinhood Suspended Super Bowl Betting After Limited Rollout

The product had been made available to only 1% of Robinhood’s customers, with some already placing bets before the suspension.

“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,” Robinhood said in a statement.

The suspension follows reports that the CFTC is investigating Crypto.com and Kalshi over their Super Bowl event contracts and their compliance with derivatives regulations.

“Robinhood $HOOD suspended trading in Super Bowl betting contracts after the brokerage received a request from the U.S. Commodity Futures Trading Commission.” pic.twitter.com/c6f9U64Ciz

— Jevgenijs Kazanins (@jevgenijs) February 4, 2025

Event contracts, unlike traditional sports betting, operate through a pool of users predicting an outcome rather than a bookmaker setting odds. Despite the probe, Crypto.com has stated it will continue offering Super Bowl wagers.

Robinhood first entered the event contract space in October, allowing users to trade on the outcome of the U.S. presidential election, following a court ruling in favor of Kalshi that permitted such contracts.

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Robinhood Settles With SEC For $45M

Last month, Robinhood agreed to pay a $45 million settlement to the US Securities and Exchange Commission (SEC) following allegations of violating over ten securities law provisions.

The settlement affects Robinhood’s broker-dealer subsidiaries, Robinhood Securities LLC and Robinhood Financial LLC. Per the statement, the SEC’s investigation found that the Robinhood entities failed to comply with a range of regulatory requirements.

Violations included inaccurate reporting of trading activity, failure to comply with short sale rules, untimely filing of suspicious activity reports, inadequate record-keeping, and insufficient safeguards for customer information.

A key finding was Robinhood’s failure to maintain and preserve customer electronic communications between 2020 and 2021. Additionally, the SEC noted that the company submitted over 11,849 inaccurate or incomplete Electronic Blue Sheets (EBS), leading to errors in the reporting of approximately 392 million transactions.

More recently, Robinhood Crypto announced its entry into Spain, enabling users in the country to access its trading, staking, and investing services.

As part of its European strategy, Robinhood has been localizing its app for specific countries, including Italy, Poland, and Lithuania, providing local language support and passive income opportunities through staking.

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The post Robinhood Halts Super Bowl Betting Following CFTC Request appeared first on 99Bitcoins.