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Contracts allow customers to predict the winner of the
game
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Follows the launch of U.S. presidential election contracts
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Super Bowl to be played on February 9
Feb 3 (Reuters) - Robinhood is rolling out
event contracts to let U.S. users wager on the outcome of the
Super Bowl clash, it said on Monday, seeking to tap into the
betting mania around one of the most iconic sporting events in
the country.
The platform has been pushing to gain traction with retail
investors and evolve beyond its stock-trading roots, a strategy
that kicked off with Robinhood launching widely popular
contracts to bet on the U.S. presidential election in October.
More than 500 million election contracts were traded on
the platform in about a week as users aimed to profit from a
close race between Donald Trump and Kamala Harris.
The Super Bowl product is being offered through the
company's derivatives arm.
Event derivatives trading involves buying and selling
contracts that let traders speculate on the outcomes of specific
events, including elections, economic data releases and policy
decisions.
These products have enjoyed a warm reception, despite being
relatively new and widely seen as high-risk, especially after a
U.S. court struck down the Commodity Futures Trading
Commission's efforts to block KalshiEX's election betting
contracts.
The Super Bowl will feature the reigning champions, Kansas
City Chiefs, face off against the Philadelphia Eagles. The game
will be played in New Orleans, Louisiana, at the Caesars
Superdome on Feb. 9.
The event holds significant cultural, economic, and social
importance, with more than 100,000 visitors expected to descend
on New Orleans this week. Some of the biggest names from the
worlds of sports and entertainment are expected to be on hand to
kick off the celebrations.
(Reporting by Manya Saini and Niket Nishant in Bengaluru;
Editing by Devika Syamnath)