Robinhood Launches Sports Prediction Markets For March Madness

Robinhood is diving into the $3.1 billion betting frenzy of March Madness with a new event trading feature, giving users in all 50 states a new way to interact with the tournament beyond traditional sports betting.

March Madness betting is expected to reach record highs, with the American Gaming Association estimating that Americans will wager $3.1 billion on this year’s men’s and women’s tournaments, up from $2.7 billion last year.

Partnered with Kalshi, Robinhood is seeking to tap into the growing market of sports prediction and financial speculation.

Robinhood’s Entry Into March Madness Prediction Markets

Now available within the Robinhood app’s prediction markets hub, the event trading feature allows sports fans to trade on tournament outcomes, blending market-driven decision-making with the high-stakes excitement of college basketball.

With event trading, users can buy and sell positions on tournament outcomes, from early-round game winners to the national champion. Traders win or lose based on game results.

According to Robinhood, “prediction markets help reduce uncertainty by providing real-time probabilities that reflect the collective wisdom of participants.”

Prediction markets have been gaining popularity as users seek ways to trade based on real-world events, from elections to economic indicators. Platforms like Kalshi and Polymarket have already carved out a niche in event trading, and Robinhood’s entry signals a growing interest in this emerging market.

Second Time’s The Charm?

This isn’t the first time that Robinhood has stepped into the sports-based event trading arena. In February, it announced NFL predictions, which would have enabled its customers to trade on the outcome of the Super Bowl. However, a day later, the Commodity Futures Trading Commission ordered that the company halt trading.

This month, the company said that it “has been in close contact with the Commodity Futures Trading Commission (CFTC) to ensure compliance and promote innovation in the futures, derivatives, and crypto markets.”

Responsible Gambling, Responsible Trading

While event trading adds an innovative twist to March Madness, it also carries risks, just like traditional sports betting. Robinhood does have responsible trading measures and safeguards similar to those used by leading sports betting operators like DraftKings, including risk warnings, deposit and trading limits, self-exclusion tools, and educational resources.

While event contracts share similarities with sports betting, they are structured as financial instruments and are regulated differently. Nonetheless, Robinhood’s launch of March Madness event trading is an interesting twist in blending finance with sports speculation.