Partners with Kalshi to Offer Political, Economic and Sports Betting

Robinhood launches a prediction markets hub with Kalshi, enabling bets on major political, economic and sports events.
The platform offers contracts priced 1–99 cents, reflecting market-assigned probabilities, and is regulated by the CFTC.
CEO Vlad Tenev champions prediction markets as a “truth machine” that leverages market incentives and crowd wisdom.

Popular trading app Robinhood has announced the launch of its new prediction markets hub on March 17, allowing users to bet on the outcomes of major global events.

Initially, the platform offers contracts tied to economic indicators like the Federal Reserve’s May target interest rate and major sporting events like the men’s and women’s College Basketball Tournaments.

Similar to other prediction platforms, all contracts trade from 1 to 99 cents and directly represent the market-assigned probability of an event occurring. So, for example, a contract priced at 53 cents translates into a 53% probability that the outcome will occur, according to market participants, and so on and so forth.

Related: Casa Co-Founder Advocates for Burning Lost Bitcoins to Protect Network Integrity

Robinhood Bets on Prediction Markets

Robinhood’s new marketplace will run based on Kalshi, one of the most popular prediction platforms and regulated exchanges overseen by the Commodity Futures Trading Commission (CFTC).

The trading platform said this dedicated and regulated structure would allow users to engage with prediction markets safely, but, most importantly, all past regulatory hurdles the firm encountered have been addressed (reportedly):

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.

Robinhood

Talking about regulatory pressure, crypto’s largest prediction market Polymarket was banned in Singapore in an illegal online gambling crackdown… so good for Robinhood for doing due diligence first, we could say?

According to Robinhood CEO and founder Vlad Tenev, prediction markets are a “truth machine” that polls the wisdom of the crowd, which is quite an amazing way of putting it:

At the most fundamental level, they are the application of capitalism to the pursuit of truth. Market incentives and the wisdom of the crowds sift through all the information out there to determine answers to well-specified questions and outcomes to important events — sometimes even before they happen.