Robinhood Markets (HOOD) has pulled the plug on its Super Bowl betting just one day after launch. The U.S. Commodity Futures Trading Commission (CFTC) requested that Robinhood halt its Pro Football Championship event contracts, leaving customers in the lurch.
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CFTC Forces a Time-Out
In a February 4 announcement, Robinhood confirmed it had paused access to the betting feature, which was available to about 1% of its users. The event contracts allowed users to wager on the outcome of the Philadelphia Eagles vs. Kansas City Chiefs game scheduled for February 9. The company expressed disappointment, stating it had been in “regular communication” with the CFTC and had hoped to avoid such a roadblock.
Users Left in Limbo
Robinhood assured users that those who had placed bets would have options to either close their positions or let them settle. The CFTC’s concerns remain undisclosed, though regulatory scrutiny of event contracts has heightened. Crypto.com, facing similar probes, has chosen to continue offering bets, according to Cointelegraph.
Despite this setback, Robinhood intends to collaborate with regulators and develop a more robust platform for event trading later in the year.
Is HOOD a Good Stock to Buy?
Analysts remain optimistic about HOOD stock, with a Strong Buy consensus rating based on 12 Buys and four Holds. Over the past year, HOOD has skyrocketed by more than 400%, and the average HOOD price target of $52.64 implies a downside potential of 2.9% from current levels.
