Published on: August 19, 2025, 11:08h.
Updated on: August 19, 2025, 11:24h.
- Breaking news just before college football’s week zero
- Robinhood partners with prediction marketplace Kalshi
Robinhood Markets (NASDAQ: HOOD) revealed on Tuesday that its subsidiary, Robinhood Derivatives, LLC (RHD), will introduce prediction markets focusing on the NFL and college football, potentially intensifying the competition with established sportsbook operators.
Clients can engage in trading event contracts for all standard NFL games as well as “all college Power 4 schools and independents” via the Prediction Markets Hub within Robinhood’s mobile app. To qualify for Robinhood Derivatives, clients must be eligible for margin trading or belong to the second and third tiers of options trading.
“Pro and college football prediction markets are launching now and will be accessible to all qualifying customers soon,” the financial services provider stated. “Initially, we will provide contracts for the first two weeks of both pro and college seasons, with more weekly matchups added as the season unfolds (for instance, week 3 games will be introduced after week 1 concludes).”
Robinhood entered the prediction markets arena ahead of the 2024 presidential election — a crucial event in the yes/no contract domain — amassing over two billion contracts traded on its platform since last year.
Robinhood Taking Advantage of Football’s Popularity
In collaboration with prediction market powerhouse Kalshi, Robinhood had previously offered its derivatives clientele event contracts on the Super Bowl earlier this year, marking its initial foray into football-related contracts.
This move acknowledges the immense popularity of football in the U.S., which remains the top sport for wagers in the country. The announcement also poses a competitive challenge to traditional sportsbook operators that substantially depend on football season for a considerable share of their profits.
Such competition warrants attention from gaming companies, particularly since the typical Robinhood user is around 35 years old, with the largest demographic being in their late 20s — a primary segment for sportsbooks.
Although Robinhood’s average account size is estimated at $4,800, many clients in the younger demographic are enthusiastic about crypto trading and exhibit higher risk appetites, making them appealing trade partners for gaming firms.
Robinhood’s Football Strategy May Draw Scrutiny
The firm’s deeper involvement with football derivatives could attract criticism from industry experts and regulators. Many skeptics argue that prediction markets resemble sports betting and operate without state gaming licenses.
While Robinhood has not clarified whether its football contracts are considered traditional sports bets, it indicated that clients might prefer yes/no contracts over conventional money line bets.
“In contrast to sports betting, where the firm establishes the line, event contracts utilize the robust structure of financial markets, allowing buyers and sellers to interact in setting prices,” the company explained. “Customers can track contracts in real time and manage their risk by adjusting or exiting their positions up until the contract’s expiration during a game.”