Betting on Elections: Robinhood Enters the Game

Robinhood has made a splash in the political prediction market, allowing users to trade contracts on who will win the 2024 presidential election: Kamala Harris or Donald Trump. From 8 a. m. to 8 p. m. ET, qualified U. S. citizens can jump into the game, but there's a limit of 5, 000 contracts per user. Sounds like a fun way to test your political instincts! The contracts, ranging from two cents to 99 cents, could pay out big if your guess is right—up to $5, 000! Robinhood isn't alone in this market, but the company is one of the most notable names to join. The buzz started after Kalshi and Interactive Brokers fought and won a ruling to let users trade election outcomes. Since then, Interactive Brokers has been offering various political contracts. But how accurate are these predictions compared to polls? That's still up for debate. Things got interesting last week when Polymarket, a political gambling platform, revealed that four accounts betting over $28 million on Trump were controlled by a single trader. Turns out, it was a French national with substantial trading experience. Polymarket assured that the trader wasn't trying to manipulate Trump's odds. For those keen to trade on Harris and Trump contracts, trading will be open almost 24/7 during election week, with a brief pause at 5 p. m. ET each day. The big payout day? Between January 7-8, 2025.