Robinhood Partners with Kalshi to Launch Prediction Markets Hub

Robinhood is expanding into prediction markets, introducing a new hub for betting on politics, economics, and sports through its subsidiary, Robinhood Derivatives. The initiative, launched in partnership with U.S.-based prediction market firm Kalshi, marks Robinhood's deeper push into event-based trading.

Robinhood’s New Venture into Prediction Markets

The prediction market hub will allow users to wager on real-world events, starting with political elections, economic trends, and major sporting outcomes. The firm plans to broaden its scope to include other significant market-moving events, according to Robinhood CEO Vladimir Tenev.

"At the most fundamental level, prediction market are the application of capitalism to the pursuit of truth," Tenev shared on X (formerly Twitter). "Market incentives and the wisdom of the crowds sift through all the information out there to determine answers to well-specified questions and outcomes to important events—sometimes even before they happen."

A Growing Market for Political and Economic Predictions

Robinhood's move into prediction markets builds on the industry's growing trader interest in speculative event-based trading. The 2024 U.S. Presidential Election saw record-breaking volumes, with Polymarket users betting over $3 billion on whether Donald Trump or Kamala Harris would secure the presidency.

Robinhood Derivatives had already ventured into political futures trading, competing directly with Polymarket and Kalshi—the latter now a key partner in the firm's latest expansion.

A Step Forward in Event-Based Trading

Robinhood’s decision to integrate Kalshi’s prediction markets infrastructure reflects a broader mainstream adoption of betting on real-world events. While prediction markets have traditionally faced regulatory scrutiny, this partnership signals an effort to bring structured, compliant event trading to retail investors.