While the hub will live in the Robinhood app, the “contracts” are being made available by Kalshi, which is technically a federally regulated exchange under the Commodity Futures Trading Commission—but has also drawn ire from that very same agency for allowing people to bet on the outcome of elections.

Robinhood is launching a prediction-markets hub that will allow users to bet on basketball tournaments and coming interest-rate moves from the Federal Reserve. The brokerage is partnering with prediction-market startup Kalshi to offer the event contracts through Robinhood’s app.

Robinhood Markets' (HOOD) move earlier in the week to introduce a broad prediction market hub "could suggest a revenue run-rate of $260m annually worth 20c to EPS or 14% to 2025 EPS, at 80% incremental margins.