Robinhood launches prediction market for March Madness

Robinhood has launched a new prediction market in its app, allowing users to trade on outcomes of major events, including the upcoming March Madness tournament. This feature will also let users predict the Federal Reserve's interest rate in May. The prediction hub operates through contracts provided by Kalshi, a regulated exchange. This move follows previous attempts by Robinhood to enter the predictions market, which faced criticism for lacking user protections. The legality of these contracts has been upheld by a federal judge, despite past objections from regulators. Robinhood's new offering positions it as a significant player in the prediction market, especially as other platforms remain restricted in the U.S.