Robinhood has launched a betting markets hub as the online brokerage — best known for stock trading — expands its presence in emergent asset classes, including cryptocurrencies and event contracts, according to a March 17 announcement.
Robinhood’s stock, HOOD, rose roughly 8% on the Nasdaq after the announcement, according to data from Google Finance.
The new betting feature will let users “trade contracts for what the upper bound of the target fed funds rate will be in May, as well as the upcoming men’s and women’s College Basketball Tournaments,” it said.
HOOD’s intraday performance on the Nasdaq on March 17. Source: Google Finance
The online brokerage is tapping Kalshi, the US’ first CFTC-regulated prediction platform, to operate the event contract platform, it said.
Kalshi is already registered to list dozens of event contracts, covering outcomes ranging from election results to Rotten Tomatoes movie ratings.
Prediction markets “play an important role at the intersection of news, economics, politics, sports, and culture,” JB Mackenzie, vice president and general manager of futures and international at Robinhood, said in a statement.
Experts say political betting markets often capture public sentiment more accurately than polls. Platforms such as Kalshi and Polymarket accurately predicted US President Donald Trump’s November election win even as polls indicated a tossup.
Prediction markets have become increasingly popular in the US since September 2024, when Kalshi prevailed in a lawsuit challenging a CFTC decision to bar it from listing political event contracts.
Robinhood tested the waters of political event contracts in October when it started letting certain users bet on the outcome of the presidential election between former Vice President Kamala Harris and Trump.
In February, Robinhood suspended Super Bowl betting after receiving a request from the CFTC to nix its customers’ access to the event contracts.
Beyond stock trading
Robinhood has been expanding its footprint in emerging asset classes, including cryptocurrencies and derivatives.
Sir Ed Davey has written to King Charles to explain why he believes he has to refuse his invite to a state banquet for Donald Trump.
The Lib Dem leader said on Wednesday he will be boycotting the dinner next month during the US president’s second state visit to the UK because of the situation in Gaza.
He told Sky News on Thursday: “I’ve written to him [the King] personally explaining my thinking.
“And it’s with deep regret that I’ve had to take the decision, but I feel with what is going on in Gaza, it’s the best way I can get my voice heard.”
Sir Ed said the “sad truth” is Mr Trump is the “one man” who has the power to stop the “horrible famine in Gaza, could get the hostages released, could bring an end to this horrendous humanitarian crisis”.
He said the US president could do that by phoning up Israeli Prime Minister Benjamin Netanyahu and telling him to stop.
More on Donald Trump
Related Topics:
The Lib Dem leader said Mr Trump could also call up the Qatari government and other Gulf states to get them to put pressure on Hamas to release the remaining 50 Israeli hostages (20 living, 30 dead) they took on 7 October 2023.
Image: The King and Donald Trump during his first state visit in 2019. Pic: Reuters
He emphasised that he has “huge respect” for the King and it was a very difficult decision he “really wrestled with” and involved him talking to his wife and praying about it.
Sir Ed denied it was political posturing and instead is one of the only ways he could get Mr Trump to listen.
“I didn’t want him to come to the UK without being reminded, as best I can, that he has that moral responsibility, frankly,” he added.
“And from what I’m picking up from many people, there are people across the political spectrum who agree with me and the Democrats that it is Donald Trump, it is the United States who has this power over Netanyahu, over Hamas, albeit indirectly, to stop this horrendous situation.”
Publicly refusing the King’s invite is “the best way I can get my voice heard,” Sir Ed said.
Image: King Charles will host a state dinner for Donald Trump. Pic: PA
Tony Blair at White House Gaza meeting
While Sir Ed is choosing to snub Mr Trump to get his voice heard, former Labour prime minister Sir Tony Blair has been asked by the US president for help on Gaza.
Sir Tony joined a White House meeting on Wednesday, chaired by Mr Trump, to discuss the war in Gaza and post-war plans for the Palestinian territory, a senior White House official confirmed.
They were joined by Mr Trump’s former Middle East envoy and son-in-law, Jared Kushner, to also discuss the hostage crisis and plans to escalate food aid deliveries.
The official described it as “simply a policy meeting”.
In July, the Financial Times reported the Tony Blair Institute had participated in a project to develop a post-war Gaza plan, with the think tank having “had many calls with different groups on post-war reconstruction of Gaza but none included the idea of forcible relocation of people from Gaza”.
Sir Ed called on Sir Tony to be quizzed in parliament about his discussions with the Trump administration.
“If he has special insight into Trump’s intentions, it’s only right that parliament and the government are made privy to this,” he said.
“We must leverage all the information and resources at our disposal to make Trump do the right thing.”
The change is part of the Commodity Futures Trading Commission’s “crypto sprint,” an initiative to overhaul regulations in response to proposals from the Trump administration.