Prediction Market Woes: Will Super Bowl 59 Bets Be Voided?

• The CFTC is cracking down on sports-related prediction markets, forcing Robinhood Derivatives to halt its Super Bowl betting contracts and investigating platforms like Crypto.com and Kalshi.
• If the CFTC rules against these platforms, bettors could see their Super Bowl 59 wagers frozen, refunded, or voided due to legal uncertainty.
• With major sportsbooks arguing that prediction markets undermine legal betting, the future of these markets remains in jeopardy just days before Super Bowl LIX.

NEW YORK – Gamblers hoping to cash in on Super Bowl 59 through a prediction market may have placed their bets on shaky ground. The Commodity Futures Trading Commission (CFTC) is cracking down on sports-related event contracts, targeting platforms like Robinhood Derivatives, Crypto.com, and Kalshi.

With key investigations underway and regulatory uncertainty mounting, bettors could soon find their wagers locked out or even voided.

Robinhood Ordered to Halt Sports Betting Contracts

In a major setback, the CFTC formally requested that Robinhood Derivatives suspend access to its Pro Football Championship market. While Robinhood has complied, offering limited resolution options for existing positions, this move signals broader concerns about the legality of these markets.

The company is fighting back, arguing that banning event contracts stifles innovation and consumer choice. However, with Robinhood backing down under regulatory pressure, the broader landscape of prediction markets appears increasingly unstable.

The crackdown doesn’t stop with Robinhood. The CFTC recently announced a public roundtable to scrutinize sports-related event contracts offered by Crypto.com and Kalshi. These contracts—allowing users to bet on the Super Bowl and other sports events—have been flagged for potential violations of federal law.

CFTC Acting Chairman Caroline Pham has expressed frustration over the legal gray area surrounding prediction markets, calling the current approach a “sinkhole of legal uncertainty.” While her leadership could signal a more lenient stance, the commission is still moving forward with investigations that could determine whether sports prediction markets remain accessible for future Super Bowls.

Will Crypto and Kalshi Sports Betting Survive?

Kalshi has been aggressively expanding its sports betting offerings, while Crypto.com has continued pushing Super Bowl event contracts. However, the CFTC’s ongoing investigation will determine whether these platforms’ sports-related markets are legally classified as “gaming” under the Commodity Exchange Act.

This classification is crucial—if deemed gaming, these platforms could face immediate shutdowns of their sports event contracts. Legal experts suggest that past court rulings have categorized betting as gaming, meaning the odds are stacked against these markets surviving unscathed.

What It Means for Super Bowl 59 Betting

For bettors who have already placed wagers on these markets, the uncertainty is alarming. If the CFTC rules against these platforms, users could see their bets frozen, refunded, or outright voided.

Additionally, the American Gaming Association has raised concerns that prediction markets are undermining legal online sportsbooks, adding another layer of opposition to their survival.

With Super Bowl 59 days away, the legal future of sports prediction markets hangs in the balance. If the CFTC’s crackdown continues, some gamblers may find themselves unable to cash out—or even place a bet at all.

If you hold uncertainty in your prediction market bet placed on Super Bowl 59, consider joining a reputable online sportsbook that has been around for over a decade. They hold Super Bowl props, game lines, and hundreds of other ways to bet – all while accepting crypto too.

News tags: American Gaming Association | Bovada | Caroline Pham | CFTC | Commodity Exchange Act | Commodity Futures Trading Commission | Crypto.com | Event Contracts | Kalshi | Prediction Markets | Robinhood | Super Bowl | Super Bowl 59