Robinhood is expanding its presence in the sports prediction market through a new partnership with the Kalshi exchange, introducing money-line markets for this week’s NCAA Tournament games. The move comes after the company briefly entered the space with a Super Bowl betting market earlier this year but withdrew following regulatory concerns.
The partnership with Kalshi will allow Robinhood users to access prediction markets directly through the app, enabling them to place contracts on the outcome of March Madness games. The feature is part of Robinhood’s push into prediction markets, with plans to introduce contracts tied to financial markets, politics, and other events in the coming months.
Robinhood’s return to the space follows ongoing discussions with the Commodity Futures Trading Commission (CFTC). The company stated that it has been in “close contact with the CFTC over the past several weeks” and is committed to ensuring compliance as it expands its offerings.
The CFTC previously intervened in sports prediction markets, notably requesting Crypto.com to remove its Super Bowl market, though the exchange refused, citing the upcoming presidential administration transition. A public roundtable discussion on sports-related prediction markets is expected within the next month and a half.
The legality of sports event contracts remains a contested issue, with questions about whether regulation falls under federal jurisdiction or should be left to individual states. Nevada regulators recently issued a cease-and-desist order to Kalshi, urging it to stop its services by last Friday, but extended the initial 10-day deadline after the company retained outside legal counsel.
Major League Baseball has also petitioned the CFTC, advocating for prediction markets to be subject to the same integrity standards as traditional sportsbooks such as FanDuel and DraftKings.
Kalshi, which is best known for its political betting markets, has positioned itself as a leader in event-driven prediction trading. Its offerings range from election outcomes to Bitcoin price forecasts and music chart predictions.
CEO Tarek Mansour told Front Office Sports: “March Madness is famous for its volatility; we’re thrilled to add the excitement of prediction markets to this year’s games and couldn’t ask for a better partner in Robinhood to bring our vision to every American.”
Robinhood will rely on Kalshi’s infrastructure to facilitate transactions, matching users with counterparties for each contract. However, a company spokesperson indicated that this is not a permanent arrangement, leaving open the possibility that Robinhood could develop its own exchange or partner with additional providers in the future.
Customers using the new prediction market hub will be charged a two-cent fee per contract, split evenly between Robinhood and Kalshi. The service will be available across most of the United States, with Nevada being the only exception. To participate, users must have an individual Robinhood investing account with either margin investing enabled or options trading approval.
Original article: https://www.yogonet.com/international/news/2025/03/18/98579-robinhood-partners-with-kalshi-to-launch-march-madness-prediction-markets-
