Robinhood Partners with Kalshi to Launch Sports Prediction Markets

The sports prediction market industry continues to grow fast.

Robinhood has announced a new partnership with Kalshi to offer prediction markets for March Madness. The popular trading platform will allow customers to purchase “contracts” for teams right on its mobile app. 

The new feature comes as the Commodity Futures Trading Commission (CFTC) reviews the legality of these new controversial markets. Robinhood has been working closely with the regulator to launch the latest offering, allowing them to avoid legal roadblocks ahead of one of the most popular betting events in the world.

Launching the new market in time for March Madness is a massive win for Robinhood. The American Gaming Association is projecting a record-setting $3.1 billion in wagers will be placed during the 2025 NCAA Tournament. That projection does not include prediction markets but signals that the industry will likely see eye-popping numbers.

The new partnership comes just months after a previous attempt failed. Robinhood and Kalshi attempted to reach a deal to provide a Super Bowl market, but talks fell through.

Prediction Markets Remain Controversial

Sports prediction markets remain highly controversial. Opponents of the industry have argued that it qualifies as sports betting but isn’t subject to the same regulations. 

This means states and sportsbooks are stealing business without having to pay the heavy tax rates levied on the sports betting industry. This allows these markets to offer better payouts, making it hard for regulated sportsbooks to compete.

Responsible gaming advocates have also raised concerns about sports prediction markets. The lack of regulations means a far higher risk of problem gambling, especially when customers bet using funds from their investment portfolios. Gambling addiction is already spiking thanks to the regulated industry, and legalizing these new markets would be like pouring gasoline on a fire.

While many groups remain opposed to these controversial markets, Robinhood’s new partnership shows that they likely will not be going away anytime soon.