The U.S. Commodity Futures Trading Commission (CFTC) is investigating Super Bowl betting markets offered by Crypto.com and Kalshi. The regulator is checking if their betting contracts comply with U.S. derivatives rules.
CFTC probes Super Bowl wagers offered by Crypto.com and Kalshi. Source: XCrypto.com, a cryptocurrency exchange that runs a U.S.-based derivatives platform, said it will keep offering Super Bowl bets while working with the CFTC to address concerns.
Crypto.com Vows to Continue Super Bowl Bets Despite CFTC Review
On Dec. 19, 2024, Crypto.com told the CFTC that it planned to start trading Super Bowl-related contracts on Dec. 23. However, Bloomberg reported that the CFTC did not have enough time to review them before Christmas and was also dealing with the risk of a government shutdown.
Crypto.com insists its betting contracts are legal. It believes the CFTC should regulate such markets to ensure fairness and prevent manipulation across all 50 U.S. states. The company said, “We firmly believe in the legality of our events contracts” and said it will keep offering them while working with the CFTC.
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CFTC Cannot Halt Betting Before the Big Game
The CFTC is responsible for overseeing derivatives markets in the U.S. and has the authority to request additional information from firms that “self-certify” their financial products. These firms must demonstrate that their products aren’t susceptible to manipulation and comply with derivatives regulations. The CFTC then decides whether any enforcement action is necessary.
The CFTC is also reviewing similar contracts from Kalshi, a prediction market platform. However, the regulator cannot immediately stop these Super Bowl bets. Any review must take at least 90 days, meaning the investigation will continue even after the Feb. 9 Super Bowl. The CFTC could still decide to ban such contracts in the future.
Kalshi’s Super Bowl Betting Market Surges Past $2.4 Million in Trades
Prediction markets allow people to bet on the outcome of real-world events. They range from sports games to political elections. Many of these platforms use blockchain technology for transparency. For example, Polymarket saw over $3.6 billion in bets on the U.S. election last year.
Kalshi launched its Super Bowl betting market on Jan. 24, letting users bet on whether Kansas City or Philadelphia will win. So far, more than $2.4 million has been traded.
Kansas City vs Philadelphia Super Bowl odds on Kalshi. Source: KalshiKalshi is also accepting bets on which companies will advertise during the game, attracting nearly $1.5 million in wagers.
Meanwhile, Robinhood Derivatives announced on Feb. 3 that it is letting certain traders place Super Bowl bets through its partnership with Kalshi.
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