Robinhood users can bet on LIX
US-based stock trading platform Robinhood has announced a partnership with prediction market provider Kalshi to run its Super Bowl event contract.
analysts questioning the impact on US betting regulations
The move also has analysts questioning the impact such Contract for Difference’s (CFD) will have on US betting regulations.
New York-based Kalshi took to X to share the news that it had rolled out its first broker in “new friend” Robinhood:
Robinhood stated account holders with funds in their brokerage accounts can bet on the Super Bowl LIX game between the Philadelphia Eagles and the Kansas City Chiefs on Sunday.
While the CFD gives Robinhood users the right to bet on the LIX, they can only wager on the outright winner. Nevertheless, the news has brought CFDs under the spotlight, with experts questioning both federal and state regulators’ response to event trading in 2025.
Questions asked
The issues with CFDs start with the fact that while legal sports betting is state regulated, derivatives trading is under federal control.
According to Front Office Sports, while Robinhood and Kalshi have taken care to brand their LIX market “event trading” it is “functionally the same” as gambling on sports.
Following Kalshi’s October victory over the Commodity Futures Trading Commission (CTFC) in a US federal appeals court that allowed it to offer bets on the Presidential Election, other exchanges including Crypto.com launched a Super Bowl sports CFD last year. Trading on the market is, however, paused as the CFTC is reviewing the product offering.
iGaming media cited Regulus Partners analysts giving their take on the big question state and federal regulators may face on event contracts in 2025.
states have just lost their right to regulate and tax sports betting.”
“If CFDs can offer sports, then the states have just lost their right to regulate and tax sports betting.” Regulus added the outcome is unsuited to major stakeholders, “nor does it provide a working legal-regulatory environment.”
Pro-gambling leadership
The analysts, however, poured cold water on speculation the Trump administration is more event contract-friendly, despite Kalshi recently appointing Donald Trump Jr. as strategic advisor.
Instead of increased federal oversight, Regulus stated, ironically the pro-gambling stance of the Trump administration “increases the likelihood of action” over CFDs “overwhelming the state-by-state solution.”
The analysts believe the new government won’t “let investing become sports betting by another name” just because “Trump likes crypto.” Instead, Regulus stated “gambling stakeholders will be listened to.”