Robinhood unveils prediction markets just in time for March Madness.

Summary

• Robinhood partners with Kalshi to offer prediction markets.
• The company has released a new standalone product this week.
• Robinhood is the newest platform to explore expanding prediction markets.

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With the Super Bowl finished, elections long past, and the college basketball season starting this Thursday, Robinhood has announced the relaunch of its prediction markets hub. This feature enables users to predict the outcomes of March Madness games.

March Madness is new opportunity for Robinhood

March Madness ranks among the most heavily wagered sports events in the United States. According to the American Gaming Association, $3.1 billion is expected to be wagered through regulated markets in 2025 alone. In partnership with KalshiEX LLC, a well-established company providing prediction markets on various events like politics, sports, and court trials, a prediction markets hub has been launched. Robinhood is expanding beyond its traditional investment services into the realm of prediction markets. This shift is being spearheaded by JB Mackenzie, Robinhood's General Manager of Futures and International, who sees potential in these markets:

The new prediction markets hub is an independent platform tailored specifically for sports enthusiasts looking to back outcomes. However, this type of content has faced significant resistance, first from the Commodity Futures Trading Commission, which has clashed with both Kalshi and Robinhood, and then from state-level regulators. For instance, Kalshi was initially directed to exit Nevada, although the state has granted the platform additional time to defend its position. Meanwhile, the regulated sports betting operators and tribal gaming entities remain opposed to prediction markets, likening them to sports gambling.

Sports betting giants object to prediction markets – but embrace them

Kalshi and similar platforms argue that their offerings are not betting markets because they don't set the odds—public opinion does. Robinhood is just one of many companies exploring this model. While some mainstream companies have been hesitant about prediction markets, others, like DraftKings, have embraced them, planning to launch their own. Despite facing criticism, prediction markets are likely here to stay.