Robinhood joins election betting market with Harris and Trump contracts

Robinhood announced connected Monday it is tapping into a increasing authorities prediction marketplace by allowing users to waste and acquisition Kamala Harris aliases Donald Trump contracts on nan 2024 statesmanlike election.

Users were capable to commencement trading arsenic agelong arsenic they met definite qualifications, for illustration being a US citizen, nan investing level said successful a property release. The arena statement is being offered by Robinhood Derivatives and ForecastEx.

The contracts will beryllium priced betwixt 2 cents and 99 cents, earning a $1 payout if nan personification guesses nan winning candidate.

Users tin acquisition up to 5,000 predetermination contracts, meaning Robinhood users tin triumph up to a $5,000 payout if they conjecture correctly, institution spokesperson Christina Trejo told Forbes.

Robinhood is 1 of nan astir recognizable firms to subordinate successful nan predetermination betting industry. The move comes aft Kalshi and Interactive Brokers won a ruling against nan Commodity Futures Trading Commission to let predetermination result trading. The CFTC is appealing nan ruling.

Since nan ruling, Interactive Brokers has launched various governmental contracts.

In a neck-and-neck race, much eyes person looked to nan governmental betting markets to foretell who will triumph nan presidency. Wagering platforms overwhelmingly stake connected a Trump win. It is unclear really betting markets comparison to polls erstwhile it comes to result prediction accuracy.

Election betting markets faced contention past week erstwhile governmental gambling level Polymarket confirmed that 4 accounts that collectively stake much than $28 cardinal connected Trump were controlled by a azygous trader.

The institution told CNBC nan trader was a French nationalist pinch “extensive trading acquisition and a financial services background.”

Polymarket, which is presently banned for US traders, said location was nary grounds nan trader was trying to fluff Trump’s likelihood connected nan betting markets.

For users looking to waste and acquisition nan Harris and Trump contracts, trading will beryllium unfastened astir 24/7 during nan week of nan election, pinch a 15-minute-long nary trading play astatine 5:00 p.m. ET each day.

The contracts will salary retired Jan. 7-8, 2025.