Robinhood has launched a new prediction markets hub that allows customers to bet on the outcomes of some of the world’s biggest events.
The prediction markets hub and corresponding contracts will initially be available across the United States (except Nevada) through KalshiEX, which is regulated by the Commodity Futures Trading Commission (CFTC).
The dedicated hub allows customers to trade contracts on a range of events, including what the upper bound of the target fed funds rate will be in May, as well as the upcoming March Madness college basketball tournament.
“We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture,” said JB Mackenzie, vice president and general manager of Futures and International at Robinhood. “We’re excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations.”
The financial trading platform said that building a standalone prediction markets hub would allow the company to better serve its customers “as they look to engage with events that align with their interests”, with other contracts to be added relating to markets, sports and politics.
“We have been in close contact with the CFTC over the past several weeks and look forward to continuing to work with them to promote innovation in the futures, derivatives and crypto markets,” said Robinhood.
Kalshi CEO Tarek Mansour said on LinkedIn: “We are incredibly excited to launch Robinhood (again), as the first broker to develop a prediction markets hub. They are starting with markets on March Madness and Fed rates, with likely more to come. Together, we are bringing prediction markets to 25 million users.
“We did it with elections and now we will do it with sports. Together we will change the world of finance and trading.”
Robinhood was forced to backtrack on its plans to launch event contracts on this year’s Super Bowl LIX after the CFTC formally requested that Robinhood “not permit customers to access” sports event contracts.
Earlier this month the Nevada Gaming Control Board (NGCB) ordered Kalshi to cease all unlawful activity in Nevada by Friday 14 March, after notifying the company that offering “event-based contracts” on sporting events and election outcomes is unlawful in the state.
On Friday, the NGCB allowed a request from counsel representing Kalshi for a “limited period of additional time” to address the NGCB’s order.