Kalshi to power Robinhood’s event contracts for Super Bowl LIX

Kalshi Robinhood Super Bowl LIX Event Contracts
Image: Ringo Chiu / Shutterstock

Kalshi and Robinhood are teaming up to provide football fans with a new gaming opportunity ahead of Super Bowl LIX.

On Monday, fintech giant Robinhood announced a partnership with prediction market Kalshi to offer event contracts for Super Bowl LIX between the Kansas City Chiefs and Philadelphia Eagles. Robinhood is offering “Who Will Win?” event contracts for the Big Game, which takes place on Feb. 9 at Caesars Superdome in New Orleans.

“Robinhood’s mission is to democratize finance for all,” said the company in a press release. “With an emerging asset class like event contracts, we recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports and entertainment.”

Event contracts for Super Bowl LIX are available to customers who open a Robinhood Derivatives account by having margin investing enabled or options trading approved.

Robinhood plans to pay its customers on Feb. 10 with Super Bowl LIX event contracts paying out “$1 per contact held to the contract holders of the correct outcome.” Robinhood charges a $0.01 commission per event contract for all trading on the fintech platform.

As of Feb. 3, the company allows each customer to hold a maximum of 50,000 contracts.

Event contracts under a regulatory microscope

Kalshi is collaborating with Robinhood after the federally regulated prediction market requested approval from the Commodity Futures Trading Commission (CFTC) to offer contracts on sporting events last month. Kalshi began offering its sports event contracts to users in all 50 states after submitting its request to the CFTC. Its sports event contract trading feature allows trading during live events with no bans or restrictions for winners.

The CFTC is familiar with Kalshi and its event contracts amid a contentious legal battle over the legality and regulation of political event contracts.

Last month, the U.S. Court of Appeals for the District of Columbia Circuit held an oral argument with Kalshi and the CFTC regarding political contracts. The argument came after the CFTC blocked Kalshi in 2023 from offering its political event contracts. The CFTC blocked Kalshi from offering the contracts due to political betting being banned by states.

Kalshi sued the CFTC due to the blockage arguing that the commission didn’t have the proper authority to prohibit the offering of its contracts. Kalshi would be allowed to offer its contracts following a ruling by the District Court for the D.C. Circuit.

The ruling was later upheld by the U.S. Court of Appeals for the D.C. Circuit after the CFTC filed an emergency motion arguing that Kalshi’s markets were tied to gambling harm.

As of Feb. 3, Kalshi has reported $2.3 million in volume for its Super Bowl winner contracts, which is significatnly smaller than the trading on election outcomes was.

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