Anyone planning to bet on the outcome of Super Bowl LIX using the Robinhood financial services app is going to have to change their plans. The investment app’s ambitious plans to offer wagers on the Big game in the form of events trading contracts has been put on hold by the U.S. Commodity Futures Trading Commission (CFTC).
According to reports published by Reuters, and other outlets, the CFTC sent Robinhood a request yesterday that it take down Super Bowl-related events trading contracts immediately. It’s a move that’s not altogether surprising given the very grey nature of this type of wager-not-a-wager.
In its emailed letter to Robinhood, the CFTC outlined its concerns about the legality of sports-related events contracts saying, “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.
Also not surprising is the fact that Robinhood is complying with the request with little opposition. Lucas Moskowitz, Robinhood’s general counsel voiced the company’s response to the cease-and-desist letter saying, “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.”
Representatives from Kalshi, Robinhood’s partner in the events trading plan, have not yet given any formal response to the CFTC’s letter.
While it’s pretty clear that Robinhood won’t be offering Super Bowl bets this year, it’s not unthinkable that sports-related events contracts will be in a clearer legal situation this time next year. That said, it’s unclear when the CFTC plans to offer a final ruling on the subject.
