Robinhood Partners with Kalshi to Offer Super Bowl Event Contracts
Robinhood has partnered with Kalshi, a regulated event exchange, to introduce Super Bowl event contracts for its users. This collaboration allows investors to trade on the outcome of the championship game between the Kansas City Chiefs and the Philadelphia Eagles.
How Does It Work?
Through this deal, Kalshi provides the event contract platform, while Robinhood offers access to its customers. Users can purchase binary event contracts, predicting which team will win the Super Bowl.
If the prediction is correct, they earn $1 per contract; if incorrect, they receive nothing. Contract prices fluctuate based on market demand, creating a trading-like experience rather than a traditional bet.
That’s why, unlike traditional sports betting, these contracts fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than state-level gaming regulators.
Robinhood’s Expansion into Sports
Robinhood signaled its interest in sports event-based markets following the 2024 election. Like Polymarket and Kalshi, the company quickly recognized its potential. In December, CEO Vlad Tenev openly admitted that the platform was “keenly looking” into sports betting.
While entering the traditional sports betting space would be a long-term endeavor, a more immediate opportunity was already on the table. Robinhood views event contracts as a way to engage sports fans and expand beyond stocks and crypto.
Despite regulatory uncertainties from the CFTC, Kalshi, and Crypto.com have already entered the market. Now, through its partnership with Kalshi, Robinhood has given its clients access to sports futures trading as well.
With Kalshi already offering contracts on NBA and NHL games, this deal could pave the way for even broader sports-related event trading in the future.
The Assumption
While event contracts provide an alternative to traditional sports betting, they also face regulatory scrutiny. The CFTC is currently reviewing offerings from Crypto.com, raising questions about the long-term legality of these products.
However, many believe that Donald Trump’s administration might not be as strict on the crypto area as Biden’s. The assumption that Trump’s tolerance includes future contracts propelled Crypto.com and Kalshi to more decisive actions. Overall, the red line is rather vague for now, but day by day, the futures business in the US seems to approach it more and more rapidly.
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