- Robinhood is the latest platform to allow traders to wager on the 2024 election.
- Notably, US citizens can make bets on the election now.
- A recent federal court ruling opened the door to wider betting on US elections.
Robinhood on Monday became the latest platform to offer US citizens a chance to bet on the 2024 presidential election, taking advantage of a recent court ruling that opened the door to the broader public.
What's notable about Robinhood's announcement is that it is open to US citizens, which isn't technically true for some of the biggest names like Polymarket. The crypto-based betting platform has received significant attention due to wagers tilting heavily toward former President Donald Trump. A "whale," believed to be behind multiple accounts, is influencing the odds by placing roughly $46 million on Trump's victory.
Shares of Robinhood, the platform best known for its role in the meme stock saga, went up slightly on the heels of the announcement.
Robinhood previously said it would allow investors to trade the outcome of events through its derivatives unit. For now, only the 2024 election contracts will be available.
"We believe event contracts give people a tool to engage in real-time decision-making, unlocking a new asset class that democratizes access to events as they unfold," Robinhood said in a news release announcing the start of the de facto election wagers.
Until a September federal court ruling, betting on US elections was largely limited to a narrow set of academics and students. Kalshi, a New York-based market, prevailed in DC District Court over the Commodity Futures Trading Commission. Earlier this month, a federal appeals court upheld the ruling.
CFTC Chairman Rostin Behnam has strongly opposed election betting, previously testifying to Congress that allowing such wagers would turn his agency into "an election cop."
Even some of the 2024 hopefuls themselves are taking notice of the wagers. Sen. JD Vance, the GOP vice presidential nominee, recently commented on Trump's Kalshi odds during an appearance on Theo Von's podcast.
"Honestly, I think that chart's about right," Vance said. "I think that we've probably got about a 60% chance of winning."