Robinhood has announced that it is suspending the rollout of its “Pro Football Championship market,” which allowed customers to place binary bets on the outcome of the Super Bowl between the Kansas City Chiefs and the Philadelphia Eagles. The decision comes after the Commodity Futures Trading Commission (CFTC), the regulator for derivatives markets, formally requested that the Robinhood Derivatives, LLC unit “not permit customers to access” these sports event contracts.
Robinhood Suspending Pro Football Championship Market
Earlier this week, it was revealed that Robinhood was planning to offer sports betting on the Super Bowl via an event contract, a product allowing users to wager on the event’s outcome. The move was part of the company’s broader strategy to expand its event contracts offering, following a similar product introduced during the US Presidential election.
In response to the CFTC’s concerns, Robinhood shared that it was under disappointment by the outcome and is working closely with the regulator to better understand its position. The company noted that it rolled out the product to about 1% of its customers, and it will give those who already placed trades the option to close their positions or allow them to reach a resolution.
Robinhood emphasized its ongoing collaboration with the CFTC, highlighting the company’s efforts to promote balanced regulation in the futures and derivatives markets. Robinhood has participated in CFTC roundtables, provided written feedback, and advocated for the economic benefits of event contracts.
Despite the suspension, Robinhood remains committed to its goal of offering a more comprehensive event contracts platform later this year and will continue working with the CFTC to address regulatory concerns.
By working closely with the CFTC and advocating for a balanced regulatory approach, Robinhood aims to address concerns while promoting the economic benefits of event contracts. The company’s efforts suggest a determination to navigate the regulatory landscape and move forward with a more comprehensive event contracts platform later this year.
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