Kalshi and Robinhood have renewed their collaboration, launching prediction markets focused on the upcoming NCAA men’s and women’s basketball tournaments. Robinhood will feature these markets through a dedicated prediction hub in its app, providing its substantial user base access to a variety of betting opportunities.
This new initiative comes shortly after Robinhood withdrew from a similar venture around Super Bowl betting due to regulatory concerns from the Commodity Futures Trading Commission (CFTC). However, Kalshi and another market player, Crypto.com, continued offering Super Bowl contracts without Robinhood.
The renewed NCAA offering follows extensive communication with the CFTC, signaling Robinhood’s willingness to cautiously re-enter the prediction market sector. Besides sports events, users can also trade contracts predicting future decisions by the Federal Reserve, particularly regarding adjustments to interest rates.
Kalshi recently faced scrutiny from Nevada regulators who initially issued a cease-and-desist order, claiming such prediction markets require explicit gaming licenses in the state. Although regulators granted Kalshi an extension to respond, it marked the first significant regulatory hurdle for the company at the state level.
At the federal level, prediction markets have faced ongoing uncertainty. Kalshi previously won a critical court battle against the CFTC, which permitted the expansion of these markets, especially around elections and major sports events. However, changes within the CFTC—such as former Kalshi board member Brian Quintenz being nominated as chairman—suggest a potential softening in regulatory attitudes.
The CFTC recently announced plans for a discussion panel to evaluate prediction markets, receiving numerous submissions primarily from tribal entities strongly opposed to market expansion due to sovereignty and exclusivity concerns. Meanwhile, industry operators, including DraftKings, have begun exploring these markets, signaling growing interest and possible future expansion.