The backlash sets the stage for what could be a bruising fight over whether national prediction markets should be allowed into the world of sports.

Robinhood said on Tuesday it had suspended trading in Super Bowl betting contracts after the brokerage received a request from the U.S. Commodity Futures Trading Commission. "We are heeding their directive to cease offering these contracts despite the fact that the CFTC has not deemed Kalshi's football championship contracts illegal,

The CFTC asked the brokerage to stop offering customer access to contracts, warning that they might be illegal blurring of financial markets and gambling.