Robinhood Enters Election Betting Market

Robinhood has launched a new trading feature that allows users to bet on the outcome of the 2024 U.S. presidential election between Vice President Kamala Harris and former President Donald Trump. This move taps into the growing political prediction market, following a federal court ruling that permitted such trades despite opposition from the Commodity Futures Trading Commission (CFTC). Robinhood's event contracts, available to U.S. citizens, allow users to earn $1 for each correct prediction, with contracts priced between $0.02 and $0.99. The platform emphasizes that these contracts are a form of real-time decision-making rather than a form of voting. This expansion into election betting aligns with Robinhood's strategy to diversify its offerings amid increased retail investor interest. However, this development has faced criticism over concerns about election integrity and market manipulation risks, highlighted by similar controversies with platforms like Polymarket.