RobinHood is jumping into the prediction market with an events contract platform powered by one of the industry’s biggest players, Kalshi. The popular trading platform is jumping on a bandwagon along with a lot of other players who see prediction markets as a cheap alternative to regulated sports betting markets.
This isn’t the first time that RobinHood has dipped its toes into the prediction market. Earlier this year the company offered Super Bowl-related events contracts until it was asked to shut down the service by the Commodity Futures Trading Commission (CFTC). Given the changes in Washington D.C., and the fact that the incoming CFTC Commissioner is a Kalshi Board Member, RobinHood is giving predictions markets another shot. RobinHood officials say that this time around, they are in close contact with the CFTC.
When RobinHood rolls out its March Madness contracts platform, Kalshi will be present in more ways than just providing software. The events contract giant will also receive half of the two cent commission RobinHood receives on each trade.
Robinhood VP & GM of Futures and International, JB Mackenzie played it cool in a statement reported on by SBC Americas saying, “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.”
If RobinHood can establish itself as the DraftKings or FanDuel of predictions markets (Kalshi is already one of them), it will be adding some serious revenue to its bottom line.