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Trading touchdowns: Robinhood launches Super Bowl prediction contracts
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Trading touchdowns: Robinhood launches Super Bowl prediction contracts
Feb 3, 2025 5:34 AM

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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)

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