Robinhood Launches Prediction Markets with March Madness and Fed Rate Bets

The popular trading app is expanding into event-based derivatives, offering users the ability to bet on sports, politics, and economic outcomes through a new in-app hub.

Robinhood's new prediction markets hub allows users to wager on outcomes of events like the March Madness tournament and Federal Reserve interest rate decisions.
The service is being rolled out in all U.S. states except Nevada, requiring users to have specific account features like margin investing or options trading enabled.
The platform's prediction markets are powered by Kalshi, a CFTC-regulated exchange, but Robinhood may explore other partnerships or build its own exchange in the future.
Robinhood's move into prediction markets aligns with its strategy to diversify its offerings and cater to growing demand for event-based derivative contracts.
The company has faced regulatory challenges in the past, including pulling a Super Bowl betting product, but states it has worked closely with the CFTC to ensure compliance for this launch.