Robinhood Is Scaling Down Collaboration Deals with Kalshi for Events
Article:
May 2, 2025
Catch up on the latest happenings in the US iGaming sector with our breakdown of the week.
Robinhood puts a hold on Super Bowl LIX event contracts, partnering with Kalshi's prediction-betting platform now under scrutiny by the CFTC.
Event Contract Trading Illuminates the Limelight
A mere day after its launch, Robinhood has suspended its collaboration with Kalshi, the leader in the flourishing event contract market. The suspension comes in response to a request from the US Commodity Futures Trading Commission, casting a shadow over their Super Bowl LIX offering.
A Deal Gone Astray: Kalshi Betting Stakes
Comprising the crux of the partnership was Robinhood and Kalshi's event contract product, enabling traders to bet on the Super Bowl's outcome. Event contracts mirror traditional gambling in various aspects; yet, they're structured uniquely, allowing traders to buy or sell contracts tied to event outcomes. The contracts dynamically adjust based on trading activity, offering profit (or loss) opportunities similar to stock trading.
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Despite approval from the CFTC for traditional event contracts, concerns had risen regarding the product's legality under derivative laws. Kalshi is working diligently to assuage the CFTC's anxieties as it broadens its offerings.
Last year, both Robinhood and Kalshi ventured into event contracts prediction for the 2024 presidential election. However, Kalshi was the only one to secure prior approval, leaving Robinhood potentially vulnerable without negotiating under the protection of a partnership.
In a transparent blog post, Robinhood revealed:
"We pause the rollout of the Pro Football Championship market due to ongoing communication with the CFTC regarding their concerns. Roughly 1% of our customers have participated in the new product; we will provide the option to close positions or take them to resolution for those who have placed trades."
Kalshi: Super Bowl LIX, Half-Time Predictions Galore
Even in the face of controversy, Kalshi's platform continues to thrive, offering Super Bowl contracts along with speculation on Kendrick Lamar's half-time performances and the probability of snowfall in New York City this month. With over $3 million in trades already facilitated for the Super Bowl alone, Kalshi shows no signs of slowing down.
Expert Analysis: Daniel Craymer
As a seasoned sports bettor and sports editor for our site, Daniel Craymer leverages his expertise to test and critique a plethora of betting platforms. Armed with a cautious approach, Daniel thoroughly examines sports betting strategies and identifies key learning opportunities for newcomers to the world of sports betting.
- Despite the halt in partnership with Robinhood, Kalshi's event contract trading continues, allowing traders to bet on diverse outcomes such as Super Bowl outcomes, Kendrick Lamar's half-time performances, and New York City snowfall.
- Despite securing prior approval for event contracts in the previous year, Kalshi now faces concerns regarding the product's legality under derivative laws, prompting the company to work closely with the CFTC to address their anxieties.
- Last week, Robinhood announced a temporary pause in the rollout of their Super Bowl LIX event contract market due to ongoing communication with the CFTC regarding their concerns, with approximately 1% of customers participating in the new product.
- In the US iGaming sector, technology firms like Robinhood and Kalshi are expanding their offerings in finance and investing, challenging the traditional casino-and-gambling landscape by providing alternative methods for predicting and betting on events.
- Daniel Craymer, a seasoned sports bettor and sports editor, provides expert analysis on various betting platforms, exploring sports betting strategies and offering valuable learning opportunities for novices venturing into the realm of sports betting.
