- Robinhood announced today it will once again offer single-game sports event contracts to customers
- The company will offer single-game prediction contracts for all games in the upcoming March Madness tournaments
- Robinhood originally offered Super Bowl contracts, but ceased after a request from the CFTC
Robinhood is jumping back into the sports event contract market.
The company announced today it will offer a prediction markets hub directly within the Robinhood App to its 25 million customers, which will allow users to trade contracts for a variety of sports events, including every match-up of the men and women’s NCAA basketball tournaments.
It’s a return for the company to the sports event trading space, as it originally offered Super Bowl contracts before pulling the service after a request from the Commodity Futures Trading Commission (CFTC).
Back in the Game
The company made the announcement just one day before the “First Four” of the men’s NCAA basketball tournament is scheduled to begin.
“We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture,” said JB Mackenzie, VP & GM of Futures and International at Robinhood. “We’re excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations.”
In February, Robinhood announced a partnership with Kalshi to allow its users to purchase event trading contracts on whether the Eagles or Chiefs will win the Super Bowl. The service lasted for less than a day, as the company ceased its services after the CFTC formally requested the company “not permit customers to access” sports event contracts.
The prediction markets hub, and corresponding contracts, will once again be available across the country through a partnership with KalshiEX LLC, a CFTC regulated exchange.
Users can purchase contracts for each of the upcoming NCAA matchups, including the championship, and will receive $1 for every correct contract they own. User can also close their position at any time before the match ends. The company will offer trading hours on the games from 8 a.m. to 3 a.m. every day.
It’s a striking return back to the single-game event contract markets, as Robinhood ceased its services after a notice from the CFTC.
Want more regulatory news? Sign up for the SBD Newsletter below.
Super Bowl Trading Lasted All of One Day
Robinhood make a quick entrance into the sports event markets back on Feb. 3, 2025. Robinhood’s partnership with Kalshi only authorized users to deal in NFL championship event contracts between the Eagles and Chiefs. Robinhood is Kalshi’s first broker.
However, trading lasted less than 24 hours. Robinhood ceased trading on Feb. 4, 2025, after the CFTC formally requested the company “not permit customers to access” sports event contracts.
Robinhood expressed disappointment at the CFTC’s request.
“We are disappointed by this outcome, especially given that we had been in regular communication with the CFTC about our intent and plans to offer this product. We’ve also taken steps to advocate for balanced regulation in the futures and derivatives markets, including participating directly in a CFTC roundtable, providing written feedback to the CFTC, and generally championing the economic benefits of event contracts.”
After a brief hiatus, Robinhood is making a comeback in the sports event contract markets. The popular trading app, known for its commission-free trading and user-friendly interface, had previously dabbled in sports event contracts but had pulled back due to regulatory concerns. However, with renewed confidence and a fresh perspective, Robinhood is once again looking to capitalize on the growing popularity of sports betting.
Sports event contracts, also known as prediction markets, allow users to bet on the outcome of sporting events. These contracts can be traded just like stocks, with prices fluctuating based on market demand and the perceived likelihood of a particular outcome. For example, users could purchase a contract predicting that the New England Patriots will win the Super Bowl, and if the Patriots do emerge victorious, the contract would pay out a predetermined amount.
Robinhood’s re-entry into the sports event contract markets comes at a time when interest in sports betting is at an all-time high. With the legalization of sports betting in many states and the increasing popularity of fantasy sports, there is a growing demand for new and innovative ways to engage with sports. By offering sports event contracts on its platform, Robinhood is tapping into this trend and providing users with a unique opportunity to profit from their sports knowledge.
Of course, there are risks involved in trading sports event contracts, just as there are with any form of investing. The outcome of sporting events can be unpredictable, and users should be prepared to potentially lose their investment. However, for those who enjoy sports and have a knack for predicting outcomes, sports event contracts can be a fun and potentially lucrative way to engage with their favorite teams and players.
As Robinhood re-enters the sports event contract markets, it will be interesting to see how the platform evolves and how users respond to this new offering. With its reputation for innovation and user-friendly design, Robinhood is well-positioned to succeed in this space and provide users with a unique and exciting way to engage with sports.
