Robinhood to roll again Tremendous Bowl occasion contracts on the request of the U.S. Commodity Futures Buying and selling Fee (CFTC), simply days after asserting their Tremendous Bowl providing.
The Professional Soccer Championship occasion contract launched on February 3, 2025, in partnership with Kalshi, and would permit customers to wager on the tip results of the Tremendous Bowl on the weekend.
Nevertheless, the regulator pushed the brokerage to name off the contracts amidst issues that it was not allowed by legislation.
Lucas Moskowitz, Robinhood’s basic counsel, stated: “We’re heeding their directive to stop providing these contracts although the CFTC has not deemed Kalshi’s soccer championship contracts unlawful.”
In a tweet by Robinhood, the betting operator revealed how they launched the product to 1% of their shopper base. It defined that clients with trades already positioned will quickly be capable of shut the commerce to resolve them.
Kalshi beforehand despatched a submission to the CFTC for approval in January 2025, searching for to introduce sports activities occasion prediction contracts, a request Robinhood acknowledged in a weblog publish.
Robinhood, alongside Kalshi, argued that the platform would “leverage the facility and rigor of the monetary market construction to facilitate better liquidity, transparency, and worth discovery.”
As reported by Reuters, a spokesperson for the CFTC stated: “The CFTC has severe issues about FCMs providing entry to their clients to any contract that is probably not permissible underneath the legislation and can train its oversight authority to the fullest extent as applicable.”
“FCMs have strict duties and obligations pursuant to the CFTC’s buyer safety guidelines and are held to the very best requirements to safeguard the general public.”
The contracts would have been out there on Kalshi’s boards, and maintain buying and selling alternatives from 8 A.M to three P.M ET within the days main as much as the Tremendous Bowl.
Robinhood has expressed plans to launch a “extra complete” platform for occasion contracts someday in 2025.
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