Robinhood has announced the retraction of its event contracts that allowed users to wager on the Super Bowl after receiving a request from the U.S. Commodity Futures Trading Commission (CFTC). This decision came just one day after launching the new betting product, which was aimed at tapping into the growing interest in event betting among retail investors. Robinhood expressed disappointment but stated compliance with the CFTC's request, highlighting that the contracts themselves are not illegal per CFTC's stance. Users who participated can either close their positions or let them resolve as per the new directives.
Robinhood has halted its event contracts allowing bets on the Super Bowl after a request from the CFTC, despite the product's launch just one day prior.
Despite being disappointed by the outcome, Robinhood stated they are complying with the CFTC's directive, emphasizing that the agency has not declared such contracts illegal.
The event contracts were part of Robinhood's strategy to engage with the betting trend among retail investors, but the rollback limits this expansion.
Existing customers can close their open positions or let them resolve, as Robinhood pulled back on the product aimed at capitalizing on sporting event betting.
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