Robinhood Launches Betting Event Contracts for U.S. Elections as Polymarket Gains Traction

Retail trading giant Robinhood has made waves by launching a new feature called event contracts, allowing traders to place bets on the outcome of significant events, including the upcoming presidential election. This initiative follows in the footsteps of Polymarket, a popular crypto betting platform known for its real-time prediction markets.

What Are Event Contracts?

According to Robinhood’s announcement, event contracts empower customers to trade based on their predictions regarding specific outcomes. As part of this new feature, Robinhood is rolling out presidential election event contracts to a limited group of customers today. Interested users must apply and meet specific criteria, including being a U.S. citizen, to gain access to an RHD account.

Once approved, customers can engage in trading based on their forecasts for the 2024 presidential election. The platform offers two contracts: one for Kamala Harris and another for Donald Trump. This new product caters to rising customer demand for real-time market access and betting opportunities.

Polymarket’s Influence

Robinhood’s new feature comes in response to the success of Polymarket, which has gained significant traction in the prediction market space. Over the last few years, Polymarket has captured the attention of traders, offering a platform where users can bet on various political outcomes. Currently, Polymarket estimates that Donald Trump holds a 66.4% chance of winning against Kamala Harris, the Democratic nominee. The platform has achieved a remarkable trading volume of $2.585 billion for its U.S. election bets.

The crypto betting platform has attracted substantial investments from notable figures, including Peter Thiel’s Founder’s Fund and Ethereum co-founder Vitalik Buterin. In May, these high-profile investors contributed $70 million to Polymarket, further solidifying its position in the prediction market arena.