Shares of Robinhood Markets (NASDAQ:HOOD) rose on Tuesday after the company unveiled new professional and college football prediction markets on its platform, while rivals DraftKings (NASDAQ:DKNG) and Flutter Entertainment (NYSE:FLUT) slipped 2.4% and 1%, respectively.
Robinhood has incorporated football prediction contracts directly into its app via the Prediction Markets Hub, enabling users to trade on outcomes from both pro and college games. The new feature includes all regular season professional matchups and games for every Power 4 college conference and independent schools.
“Football is far and away the most popular sport in America,” said JB Mackenzie, VP & GM of Futures and International at Robinhood. “Adding pro and college football to our prediction markets hub is a no-brainer for us as we aim to make Robinhood a one-stop shop for all your investing and trading needs.”
Unlike conventional sports betting, where odds are set by bookmakers, Robinhood’s event contracts operate like financial markets, with prices determined by the interaction between buyers and sellers. Traders can manage their positions in real time during games before contracts expire.
The company reported that more than 2 billion contracts have been traded on its prediction markets since the feature’s debut late last year. Football markets are being introduced gradually and will soon be accessible to all eligible users, initially covering contracts for the first two weeks of both professional and college seasons.
Robinhood’s prediction markets are offered through Robinhood Derivatives, LLC on a CFTC-regulated exchange and are available throughout the United States.
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