Robinhood Markets has abruptly halted its newly launched Super Bowl betting product just a day after its debut, following a request from the U.S. Commodities and Futures Trading Commission (CFTC). The move comes as regulators scrutinize event-based betting in the financial sector.

The suspension affected Robinhood’s partnership with prediction market Kalshi, which had allowed users to place wagers on the outcome of the Philadelphia Eagles vs. Kansas City Chiefs championship game set for Feb. 9. Robinhood announced on Feb. 4 that it would pause the rollout of its "Pro Football Championship" market while working with the CFTC to address regulatory concerns.

Only about 1% of Robinhood users had access to the product before the halt, with some already placing trades. The company expressed frustration over the decision, stating that it had been in “regular communication” with regulators about its plans.

The CFTC's intervention is part of a broader crackdown on event contracts, which differ from traditional sports betting by using market-based odds set by users rather than bookmakers. The agency is also investigating Crypto.com and Kalshi over their Super Bowl betting offerings, raising questions about compliance with derivatives regulations. Despite the scrutiny, Crypto.com told Cointelegraph it would continue offering the wagers.

Robinhood's entry into event-based contracts began in October, with offerings tied to the outcome of the U.S. presidential election. The company's involvement in this space followed a legal victory for Kalshi, which won the right to offer U.S. users contracts on election results.

As regulatory pressure mounts, the fate of event-based trading in the U.S. remains uncertain, with platforms like Robinhood navigating legal challenges to expand their offerings.