Chips, wings, and football trades are all going off on Super Bowl Sunday because Robinhood is bringing Kalshi sports trading to its platform
Robinhood Markets Inc. is expanding into the sports event contracts market, giving retail investors the chance to trade on the outcome of Super Bowl LIX between the Kansas City Chiefs and Philadelphia Eagles.
Starting Monday, eligible customers in all 50 states can access the contracts through the derivatives exchange Kalshi Inc., according to a Robinhood statement. Traders on Robinhood’s platform will be able to use one of two event contracts to bet on either team winning the Feb. 9 game at Caesars Superdome in New Orleans.
The partnership gives Kalshi, an emerging prediction market platform, access to nearly 25 million Robinhood accounts.
“With an emerging asset class like event contracts, we recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports, and entertainment,” Robinhood said in the statement, adding that its “mission is to democratize finance for all.”
Kalshi 🤝 Robinhood
— Tarek Mansour (@mansourtarek_) February 3, 2025
Today is a big day: Kalshi launches its first broker, Robinhood.
25 million more people now have exposure to our prediction markets. pic.twitter.com/GW2HzU4tJr
Sports event trading
Robinhood plans to pay its customers on Feb. 10, with Super Bowl LIX event contracts paying out “$1 per contract held to the contract holders of the correct outcome.” The company charges a $0.01 commission per event contract for all trading on its platform.
Robinhood previously ventured into event-based trading when it allowed users to speculate on the outcome of the 2024 U.S. presidential election.
The Menlo Park, California-based firm has steadily expanded its offerings, including futures trading and index options, which it introduced in October. At a December investor day, Chief Executive Officer Vlad Tenev hinted that more event-based products, including sports-related contracts, could be on the horizon.
Kalshi requested for approval from the Commodity Futures Trading Commission (CFTC) last month to offer contracts on sporting events. The exchange has been at the center of regulatory controversy, especially over political event contracts. The CFTC blocked Kalshi from offering those contracts in 2023. To which, Kalshi pushed back, suing the agency and claiming it had no authority to impose the restriction. The case went to the U.S. Court of Appeals for the D.C. Circuit, which sided with the CFTC, maintaining that such contracts raised concerns over gambling regulations.
Crypto.com is also offering similar futures contracts, prompting CFTC reviews. Regulators are expected to make a determination on the legality of sports event contracts, but not until after the Super Bowl.
Though much lower than the massive trading volume seen for election markets in the past, Kalshi has so far reported $2.3 million in trading volume for its Super Bowl contracts, with six days to go before the game on Sunday.
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