Robinhood (HOOD) has partnered with Kalshi, a Commodity Futures Buying and selling Fee (CFTC)-regulated and blockchain-based prediction market, to let customers commerce on the outcomes of NFL and faculty soccer video games.
The betting market shall be accessible by means of Robinhood’s Prediction Markets Hub, accessible throughout the U.S. by means of Kalshi, the favored buying and selling platform stated in a weblog submit on Wednesday.
“Clients can now commerce on the outcomes of the most well-liked professional and faculty soccer video games, together with all common season professional matchups, and all faculty Energy 4 colleges and independents,” in accordance with the submit.
Robinhood is positioning the transfer as an alternative choice to conventional betting platforms. Reasonably than routing by means of sportsbooks, these trades are executed on Kalshi’s federally regulated change and handled like commodities, not wagers.
“Not like sports activities betting, the place the agency units a line, occasion contracts leverage the facility and rigor of monetary market construction and are provided in a market the place patrons and sellers work together to set the value,” the weblog submit stated.
With this transfer Robinhood might be coming after a number of the conventional betting platforms, corresponding to DraftKings (DKNG) and Fanduel guardian Flutter Leisure (FLUT).
Regulated sports activities betting
The launch marks Robinhood’s newest transfer into prediction markets after beforehand signaling curiosity within the house.
In March, the corporate rolled out a broader “Prediction Markets Hub” accessible by means of CFTC-regulated change Kalshi, following the recognition of crypto-native platforms like Polymarket, the place customers wager on outcomes starting from elections to inflation charges utilizing USDC.
Whereas Polymarket operated in a regulatory grey zone within the U.S., it not too long ago stated it’s getting ready an official return to the U.S. by means of the acquisition of QCX, a regulated derivatives change, following a federal investigation into Polymarket’s operations that was dropped.
Nevertheless, Robinhood sidestepped these regulatory issues by partnering with Kalshi, which is an change already licensed by the Commodity Futures Buying and selling Fee. That permits Robinhood to faucet into sports activities, politics and macroeconomic occasion buying and selling with out triggering playing legal guidelines.
Right this moment’s information is probably going a step right into a broader technique as Robinhood begins with sports activities betting, one of the crucial widespread betting avenues. “We at present provide contracts throughout crypto, economics, financials, sports activities, tradition, and extra, with others being added often,” the submit stated.
“Finally, our aim is to allow anybody, wherever, to commerce, make investments or maintain any monetary asset and conduct any monetary transaction by means of Robinhood.”
Learn extra: U.S. Election Betting: Polymarket ‘Manipulation’ Claims Miss the Mark
