Robinhood launches prediction market in time for March Madness
Trading platform Robinhood Markets has launched a new prediction markets hub available within the Robinhood app through its derivatives trading subsidiary Robinhood Derivatives.
Robinhood Derivatives offers futures and event contract trading and will now allow users of the Robinhood App to trade on the outcome of events happening worldwide. This includes sports events such as the upcoming NCAA Basketball Tournament, also known as March Madness.
The prediction markets hub will initially be available across the US through Kalshi, an exchange regulated by the Commodity Futures Trading Commission.
Customers who have an eligible Robinhood Derivatives account can trade these contracts, although trading prohibitions apply to users who participate in college sports.
JB Mackenzie, the Vice President and General Manager of Futures and International at Robinhood, said, “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. 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.”
However, Robinhood is not shy of controversy regarding its trading contracts. The trading platform initially launched a prediction market in collaboration with Kalshi for the Super Bowl LIX match between the Kansas City Chiefs and Philadelphia Eagles.
However, the Commodity Futures Trading Commission intervened with the launch, forcing Robinhood to cease its sports contracts rollout.
