Robinhood, In Partnership With Kalshi, Relaunches Sports Event Markets For March Madness

Robinhood returned to the sports betting prediction markets scene Monday, again partnering with Kalshi to offer exchanges for the upcoming men’s and women’s NCAA Tournaments that begin this week.

The notable difference between this and Robinhood’s short-lived partnership with Kalshi last month to offer event contracts for Super Bowl LIX is that Robinhood has now constructed its own standalone prediction markets hub. Robinhood backed away from offering Super Bowl markets almost immediately after its announcement following a request from the Commodities Futures Trading Commission (CFTC) to “not permit customers to access” such markets.

In a statement issued Monday morning, Robinhood explained that building its own prediction market hub allows the company “to better serve our customers as they look to engage with events that align with their interests.” It added it has been in “close contact with the CFTC over the last several weeks,” though it did not specify if those communications were directly related to these new offerings.

“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.” 

Robinhood announced Monday it is also offering contracts for trade for what the “upper bound” of the target fed funds rate will be in May.

Kalshi granted extension on NGCB C&D

As Kalshi continues to push the envelope regarding prediction markets involving sports events, it ponders its next course of action with the Nevada Gaming Control Board.

Kalshi requested and received an extension Friday to respond to the state agency’s cease-and-desist letter. The NGCB declared in a March 4 letter that “event-based contracts” on sporting events and election outcomes offered on Kalshi are “unlawful in Nevada unless and until approved by the Nevada Gaming Commission,” and set an effective date of last Friday for Kalshi to respond.

Kalshi is a registered entity with the CFTC that has self-certified certain sports-based event contracts and in the fall won a decision in federal court allowing it to proceed with offering prediction markets on the outcomes of elections.

The CFTC attempted to halt those markets on the basis that they are contrary to the public interest and otherwise run counter to existing regulations, and is currently appealing the decision.

The sports event contracts allow, in effect, betting on sports outcomes — otherwise known as sports betting — although the trading is conducted on an exchange and not against the house.

The general perception is that Kalshi is more likely to be given clearance to offer sports betting under the current presidential administration than was the case previously. The conflicts of interest line up in Kalshi’s favor, as the man nominated to become the next CFTC chairman, Brian Quintenz, serves on the board of Kalshi, and the president’s son, Donald Trump Jr., is an advisor to Kalshi.