Robinhood continues to expand into the prediction markets segment at a time when event contracts, and especially sports event contracts, are facing increased pushback from gambling regulators, tribal, and commercial trade groups.
Robinhood spruces up its offer with more entertainment prediction markets
Robinhood has, however, expanded with entertainment prediction markets, skirting the more sensitive area of sports gambling. Among the newly featured options for users to explore are Grammys, Golden Globes, Oscars, TV, Music, and People markets.
The platform is running such options as "#1 Searched Person on Google This year" and "Who will be People's Sexiest Man Alive this year?". The platform is also expanding into the Technology and Science domain, running prediction markets in different categories across AI, Companies, Space, Science +Health.
Among the markets in these categories are some darker ones, such as "Measles cases this year", "How many launches will SpaceX have this year?", "Will Tesla shareholders approve Elon Musk's new pay package this year?", "Will an AI-generated song be on the Billboard Hot 100?"
At a time when traditional gambling companies are avoiding these markets just yet, Robinhood and others are tapping into the fact that they are leveraging what they claim to be financial products regulated under the Commodity Futures Trading Commission (CFTC)’s remit.
However, the American Gaming Association (AGA) has increasingly attacked the prediction market sector. AGA has launched a live tracker to help visualize how much tax dollars have been lost by US states to prediction markets, leveraging sports event contracts specifically.
Prediction markets are attacked in courts, especially when they involve sports events. While Kalshi has been able to file counter-lawsuits and even gain temporary reprieves in some cases, others have been losing out.
Kalshi, Crypto, and others continue to fight legal battles
Crypto.com was recently ordered to discontinue sports markets in Nevada, although Kalshi won a temporary stay on the prohibition. Gambling regulators are presently attacking only sports event contracts, with entertainment options likely to be left unchallenged.
However, the outlook for prohibiting prediction markets completely is dim as Truth Social, President Donald Trump’s social media platform, has also announced the imminent launch of its own prediction market platform – Truth Predict, in partnership with Crypto.com.
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