Robinhood Offers Crypto Prediction Markets for Basketball Bets

Robinhood is launching a prediction markets hub thanks to a partnership with Kalshi. The hub will first offer bets on NCAA basketball tournaments but could expand after initial successes.

Both companies have been enjoying regulatory wiggle room under Trump’s administration. This new offering may put Robinhood in direct competition with Polymarket.

Robinhood’s New Prediction Market Hub

Robinhood, one of the largest trading platforms in the US, has been enjoying the recent pro-regulatory shift. Under Gary Gensler, the SEC ordered the company to pay a major fine, but it subsequently dropped its probe and penalties the following month.

Since then, Robinhood Crypto has been exploring a few new service offerings, such as a prediction markets hub.

According to a recent press release, Robinhood’s prediction markets hub will let its users trade on the outcomes of a wide variety of events. Shortly before the US election, the firm offered prediction betting on the topic of its outcome.

Now, thanks to a partnership with Kalshi, Robinhood will expand these services, beginning with US college basketball tournaments:

“[The team was] up till 4:20am working to get every single march madness game listed after Selection Sunday. The Robinhood engineering team was working in lockstep with up to ensure a smooth launch. We did it with elections and now we will do it for sports, together we will change the world of finance and trading,” claimed Tarek Mansour, CEO of Kalshi.

Kalshi also chafed under a harsh regulatory environment; last year, the CFTC tried to shut down its election-related prediction markets.

Today, however, Robinhood’s announcement claims that its prediction market hub is powered by “KalshiEX LLC, a CFTC regulated exchange.” This phrasing seems to suggest a less combative relationship with the regulator.

In any event, teaming up like this may put Robinhood in direct competition with Polymarket, the largest prediction market. Polymarket is still facing legal challenges in several worldwide jurisdictions, but its difficulties in the US have calmed down.

Robinhood, on the other hand, has been experimenting a little since Trump’s inauguration. A week after Trump took office, the firm began offering futures trading for Bitcoin and Ethereum, and its recent token listings moved the meme coin market.

In other words, Robinhood may have an opportunity to innovate and excel in a potential competition.

This prediction market hub is a major upgrade for Robinhood, but it picked a good focus area to start. Recent estimates claim that gamblers will place more than $3 billion in bets on NCAA tournaments this spring. Capturing a small share of this potential market would create significant revenue opportunities for the firm.