Key Takeaways:
- Robinhood expands into betting markets by launching an event contract platform with Kalshi, allowing users to trade on political, economic, and sports-related events.
- Shares surge 8% following the announcement, reflecting investor optimism about Robinhood’s growing presence beyond traditional trading.
- Prediction markets gain traction, with political and economic event trading volumes nearing $4B after Kalshi overturned regulatory restrictions in 2024.
Robinhood has expanded into event-based trading by launching a new prediction market platform in partnership with Kalshi, the first CFTC-regulated event contract exchange in the U.S.
This move broadens Robinhood’s offerings beyond traditional stock and crypto trading, allowing users to place bets on events such as Federal Reserve interest rates and college basketball tournaments.
Robinhood Gets Into the Betting Business, Launches Prediction Market https://t.co/Y0y8BlJEKl
— Gizmodo (@Gizmodo) March 18, 2025
Following the announcement on March 17, Robinhood’s stock (HOOD) surged by approximately 8% on Nasdaq.
Kalshi already facilitates trading on various outcomes, including election results and movie ratings.
Robinhood’s vice president, JB Mackenzie, emphasized the importance of prediction markets in reflecting public sentiment across politics, sports, and economics.
Analysts note that such markets can be more accurate than traditional polling.
Interest in event-based trading has grown since Kalshi overturned a regulatory decision restricting political event contracts in 2024.
By November, election-related trading volumes reached $4 billion across major platforms.
Robinhood previously tested political betting on the Trump-Harris election matchup but halted Super Bowl betting after regulatory concerns.
Beyond event contracts, Robinhood continues to expand into alternative assets.
The company recently listed new meme coins and launched Bitcoin futures, contributing to a 700% year-over-year increase in crypto-related revenue for Q4 2024.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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