Robinhood’s terrible plan to enter a sport

Robinhood has stopped offering a sportsmanship product after the CFTC Trading Committee (CFTC) requested. The trading company directed to individual investors was jumping to the sports betting through the professional football championship market, and is looking to take advantage of the increasing rapid demand for pure degradation.

Just a few years ago, Robinhood-which was a central in the Memstock madness that dates back to the era of the epidemic-had great criticism from legislators and the public alike because of the fears that its elegant application encouraged investment in the short term with features such as notifications that alert users to storage fluctuations Prices and sweets that covered the application whenever users put trade. The company made some changes to its products in the decisive years, and has provided products such as IRA retirement and credit card.

Most financial experts advise individuals, sometimes referred to as “retail investors” to invest with a long -term mentality by buying indicators that follow the stock market and allowing them to be appreciated over the years. Individuals usually do not make individual shares trading in funds, while the US stock market has been constantly estimated in value over recent decades, making it a largely safe bet to invest in the stock basket that reflects the entire market.

The irony about the invasion of Robinhood in the sports bet is that retail investors have been stigmatized long ago as beginners who lack experience simply throw their money, and deliberate on feelings instead of basic condemnation. Robinhood did not do any justice by introducing a product of actual gambling in its application.

“While we continue to work with CFTC to understand their fears, we are suspended the start of the football championship market. A statement on its blog. “We have moved this product to about 1 % of our customers, and for those who have already placed deals, we plan to provide the option to close their sites or take them into a solution.CFTC Robinhood warned that the product may be illegal under the current laws. The company argued, for its part, that the boys of games should be allowed because the market has shown demand for them.

Since sports betting were quickly codified in several states thanks to the 2018 Supreme Court ruling, companies such as Draftings managed to operate billions of dollars from individuals looking to make a fast dollar by putting small bets on the results of the games. Although the audience was generally supporting allowing sports betting in the beginning – it was underground, and therefore his legalization is logical – the passion began to transform societies via the Internet. In X, many people have begun to ridicule a sports bet, saying that he destroyed the brutal joy of sports entertainment as people put their own money on the line, making them a tense atmosphere and hot emotions when the bets go sideways.

It is difficult to get the exact numbers, but the American sportsmanship market has been estimated He brought 14 billion dollars In 2024, he rose from $ 11 billion in the previous year. Games are falsified, as with all gambling, for the benefit of the house.

The CFTC Futures Trading Committee (CFTC) has officially requested the Robinhood derivatives, LLC (RHD), “Do not allow customers to reach sports events contracts.

While we continue to work with CFTC to understand their concerns, we comment on the Pro …

– Comms Robinhood (Robinhoodcoms) February 4, 2025

Some dark stories have only added concerns about sports betting online. Athlete last year Publish a story About one of the old warriors who gambed his life after he became addicted to sports betting and finds himself digging a hole gradually deeper, as he tried to strengthen his losses. Strange stakes such as Parlays offer a possible grand prize, but they are incredibly complicated and difficult to win, which only encourages reckless behavior; Companies such as Draftks are returning players to their applications with offers of free money to put them on new bets. The entire story could have been torn directly from “uninterrupted gemstones”.

The idea that Robinhood will put an investment portfolio for a person, mainly, the nest egg, alongside uninterrupted roulette table, especially given the addictive nature of the activity. Hope, if Robinhood continues with the launch of its betting markets, you will think about its design carefully. However, many critics believe that it is illegal to be legal for gambling anywhere in the smartphone.

Of course, some of this is due to personal responsibility, but Robinhood must also carefully design their application so that users are protected from harmful to themselves. Company He settled in 2021 With a family, her son died of suicide after he accidentally believed that his account balance was 730,000 dollars after trading options and his inability to reach Robinhood’s support in this case. The parents said that Robinhood was wrong to attract inexperienced investors to bear significant risks in advanced financial tools without providing customer support and the necessary investment directions.