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(Reuters) - Robinhood is rolling out event contracts to let U.S. users wager on the outcome of the Super Bowl clash, it said on Monday, seeking to tap into the betting mania around one of the most iconic sporting events in the country.
The platform has been pushing to gain traction with retail investors and evolve beyond its stock-trading roots, a strategy that kicked off with Robinhood launching widely popular contracts to bet on the U.S. presidential election in October.
More than 500 million election contracts were traded on the platform in about a week as users aimed to profit from a close race between Donald Trump and Kamala Harris.
The Super Bowl product is being offered through the company's derivatives arm.
Event derivatives trading involves buying and selling contracts that let traders speculate on the outcomes of specific events, including elections, economic data releases and policy decisions.
These products have enjoyed a warm reception, despite being relatively new and widely seen as high-risk, especially after a U.S. court struck down the Commodity Futures Trading Commission's efforts to block KalshiEX's election betting contracts.
The Super Bowl will feature the reigning champions, Kansas City Chiefs, face off against the Philadelphia Eagles. The game will be played in New Orleans, Louisiana, at the Caesars Superdome on Feb. 9.
The event holds significant cultural, economic, and social importance, with more than 100,000 visitors expected to descend on New Orleans this week. Some of the biggest names from the worlds of sports and entertainment are expected to be on hand to kick off the celebrations.
(Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Devika Syamnath)