Robinhood Enters Prediction Market with Pro and College Football Trades

Robinhood has launched prediction markets for pro and college football within its app, allowing customers to trade on the outcomes of games. This move challenges the traditional sports betting market and follows similar initiatives by Kalshi and Polymarket.

Robinhood Markets (NASDAQ: HOOD) has expanded its offerings by introducing prediction markets for professional and college football directly within its app. This new feature, accessible through the Prediction Markets Hub, allows users to trade on the outcomes of popular pro and college football games [1].

The company has integrated football prediction contracts into its app, covering all regular season pro matchups and games for all college Power 4 schools and independents [2]. JB Mackenzie, VP & GM of Futures and International at Robinhood, stated, "Football is far and away the most popular sport in America. Adding pro and college football to our prediction markets hub is a no-brainer for us as we aim to make Robinhood a one-stop shop for all your investing and trading needs" [1].

Unlike traditional sports betting, where bookmakers set lines, Robinhood’s event contracts function as financial markets where buyers and sellers interact to determine prices. Users can manage their positions in real-time throughout games before contracts expire [2]. Since the launch of prediction markets last year, over 2 billion contracts have been traded on Robinhood [3].

The new football markets are rolling out gradually and will be available to all eligible customers in the coming days, initially offering contracts for the first two weeks of both pro and college seasons [3]. The prediction markets are offered through Robinhood Derivatives, LLC on a CFTC-regulated exchange and are available across the United States [2].

The introduction of these prediction markets challenges the traditional sports betting market, as it bypasses state-by-state regulations and standards [3]. However, Robinhood believes in the power of prediction markets and their role at the intersection of trading, news, information, economics, politics, culture, and sports [3].

References:
[1] https://www.tipranks.com/news/the-fly/robinhood-launches-pro-college-football-prediction-markets-thefly
[2] https://www.investing.com/news/stock-market-news/robinhood-stock-rises-after-launching-football-prediction-markets-93CH-4200174
[3] https://fxnewsgroup.com/forex-news/retail-forex/robinhood-ups-sports-betting-adding-nfl-and-college-football-event-contracts/