- Robinhood and Kalshi today announced a unique partnership
- Robinhood users can now trade NFL championship event contracts through Kalshi
- Kalshi jumped into sports event contract trading last month
Robinhood’s 25 million U.S. customers can now experience NFL championship event contract trading through a partnership with Kalshi, a regulated exchange and prediction market.
Robinhood announced the partnership with Kalshi this morning, which will allow its users to purchase event trading contracts on whether the Eagles or Chiefs will win the Super Bowl.
Kalshi announced in January it was jumping into the sports event trading contract market. It announced this past week that it would offer certain markets through other brokers.
Robinhood Only Offering NFL Championship Contracts
Robinhood’s partnership with Kalshi only authorizes their users to deal in NFL championship event contracts between the Eagles and Chiefs. Robinhood is Kalshi’s first broker.
First reported by Front Office Sports, the contracts are now available for Robinhood users.
Each winning contract for the correct prediction of the Super Bowl will return $1 to users. For example, if a contract on the Eagles is priced at 51-cents, and the Eagles win the Super Bowl, the user will receive $1 in for a profit of 49-cents on the single contract.
“Robinhood’s mission is to democratize finance for all. With an emerging asset class like event contracts, we recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports, and entertainment,” Robinhood said in a statement to Front Office Sports. “Available in all 50 states on a regulated exchange, the Pro Football Championship event contract gives eligible customers the power to trade on the outcome of the big game.”
Because the service is regulated by the Commodity Futures Trading Commission (CFTC), Kalshi and Robinhood can offer their contracts immediately to users through every state in the country.
Kalshi Jumped Into New Markets in January
Kalshi filed a submission with the CFTC on Wednesday, Jan. 22, to offer “Will <team> win <title>?”contracts to its customers.
The event trading company began offering several sports contracts to its users on Jan. 23, including the winner of the Super Bowl, the NBA champion, and conference champions for the NFL and NBA.
Kalshi is offering the following sports event trading contracts to its customers:
- Super Bowl champion
- NFL NFC champion
- NFL AFC champion
- NBA champion
- NBA Western Conference champion
- NBA Eastern Conference champion
- NHL champion
- NCAA men’s basketball champion
Kalshi prohibits current and former players, coaches, and staff of the NFL, NHL, NBA, and NCAA from purchasing the contracts. It also prohibits employees of the league, league participants, owners of teams and the league, and household members and immediate family of those previously mentioned.
Will CFTC Review Kalshi’s New Contracts?
It remains to be seen if the CFTC will evaluate this new partnership, but the regulatory commission has turned its eye recently to similar sports event trading markets.
The regulatory commission has opened a review on Crypto.com’s similar offerings. The CFTC initiated its review on Dec. 19, 2024, for contracts offered by Crypto.com based on the winner of a league championship and the hometown that will host a championship celebration, such as a parade, for its winning team.
The CFTC announced the contracts being offered by Crypto.com may involve a prohibited commodity in CFTC Regulation 40.11(a) and section 5c(c)(5)(C) of the Commodity Exchange Act. This specifically notes that registered entities shall not list for trading or accept contracts that involve “terrorism, assassination, war, gaming, or an activity that is unlawful under any state or federal law.”
The commission requested that Crypto.com cease its trading on these two contract types during the review, but a Crypto.com spokesperson noted in a statement to Sports Betting Dime it would continue to offer the contracts.
“We remain committed to working with the CFTC and will continue to support our customers and the trading of our sports title event contracts in all 50 states without interruption while we review the CFTC’s notification,” the spokesperson said.
Robinhood, the popular commission-free trading app, has recently announced a new feature that allows users to trade sports event outcomes through Kalshi. This innovative addition to the platform opens up a whole new world of possibilities for traders looking to diversify their portfolios and potentially profit from their sports knowledge.
Kalshi is a prediction market platform that allows users to trade on the outcomes of various events, including sports games. With this new integration, Robinhood users can now buy and sell contracts based on the likelihood of different sports outcomes, such as the winner of a basketball game or the total number of points scored in a football match.
This feature is not only exciting for sports fans who want to add a new dimension to their fandom, but also for traders who are looking for new opportunities to make money in the market. By leveraging their knowledge of sports and using the tools available on the Robinhood platform, users can potentially earn profits by accurately predicting the outcomes of sporting events.
One of the key benefits of trading sports event outcomes through Kalshi on Robinhood is the accessibility and ease of use. Users can seamlessly navigate between traditional stocks and sports contracts, making it simple to manage all of their investments in one place. Additionally, the commission-free trading model that Robinhood is known for applies to sports contracts as well, allowing users to trade without worrying about fees eating into their profits.
It’s important to note that trading on sports outcomes carries inherent risks, just like any other form of investing. Users should conduct thorough research and analysis before making any trades and be prepared for the possibility of losing money. However, for those who are knowledgeable about sports and enjoy the thrill of predicting outcomes, this new feature on Robinhood offers an exciting opportunity to engage with the market in a unique way.
Overall, the introduction of sports event trading through Kalshi on Robinhood represents a significant step forward in the evolution of the platform. By expanding into new markets and offering innovative features, Robinhood continues to provide users with opportunities to grow their wealth and explore new investment avenues. Whether you’re a die-hard sports fan or a seasoned trader looking for a fresh challenge, this new feature is definitely worth checking out.
