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Robinhood bolted a Prediction Markets Hub onto its main app, so 25M+ existing users can trade event contracts with zero extra download. Here’s how it works, what it costs, and the catch.
If you already have a Robinhood account, you can trade prediction markets without downloading anything new. Robinhood’s Prediction Markets Hub lives inside the main app, offering Yes/No event contracts on sports, politics, economics, weather and culture. It’s the easiest on-ramp in the category – but most contracts are routed through other exchanges, you pay a commission plus an exchange fee, and there’s no prediction-specific bonus. This Robinhood review breaks down how it works, the real costs, where it’s legal, and how it stacks up. We use official terms only – no affiliate codes.
Robinhood is the lowest-friction way to try prediction markets if you’re already a user – one tap, no new app, clean charts. But it’s a brokerage app with prediction markets added on, not a dedicated exchange: contracts are routed through KalshiEX, ForecastEx, Robinhood’s affiliated Rothera exchange and others, the commission is cheaper only with paid Gold, and there’s no welcome bonus for predictions. It’s also the rare platform with a motorsport Racing tab (F1, NASCAR, IndyCar) – but no horse racing.
★ Overview
What is Robinhood Prediction Markets? Event Trading Inside the App You Already Have
Robinhood’s event contracts are offered by Robinhood Derivatives, LLC, a registered futures commission merchant (FCM) and NFA member, and are routed through CFTC-regulated exchanges – KalshiEX, ForecastEx, Rothera Exchange and Clearing, and the North American Derivatives Exchange. You access them in the Prediction Markets Hub inside the standard Robinhood app. Rothera is Robinhood’s own play: a CFTC-licensed exchange and clearinghouse run through a joint venture with Susquehanna International Group, which started taking World Cup and baseball contracts in June 2026 and is expanding to more events over time to reduce reliance on Kalshi.
The mechanics are the category standard: buy Yes or No between $0.01 and $0.99, where the price is the implied probability; win and the contract settles at $1, lose and it’s $0; sell out before settlement if you want. The exchange – not Robinhood – decides how each contract settles.
★ Bonus & fees
Robinhood prediction markets bonus & fees: the official terms
There is no prediction-specific welcome bonus and no promo code. Robinhood does run brokerage account/transfer bonuses (for example, a percentage match on transfers, larger with Gold), but those belong to the investing product – not prediction markets. The cost that matters here is the commission.
What Robinhood charges and offers
Commission: since June 1, 2026, a probability-weighted fee – 10% × price × (1 – price) per contract, rounded up to the nearest cent and capped at $0.01 per contract.
With Robinhood Gold ($5/month): the constant drops to 5%, so cheap long shots and heavy favorites cost about half as much.
Exchange fee: the exchange can add up to $0.01 per contract, on both opening and closing trades.
Welcome bonus: none for event contracts.
Because the commission and exchange fee apply to every contract, opening and closing, frequent traders should add both up before comparing with a dedicated exchange’s maker/taker model. If you trade often, price the Gold subscription against your volume.
★ Promo code
Robinhood Promo Code: October 2026
Robinhood has no promo code for prediction markets. The table reflects the official terms; any prediction “code” advertised elsewhere is an affiliate link.
Robinhood Prediction Markets
October 2026
Promo code
No code required
Prediction welcome bonus
None (account/transfer bonuses are a separate product)
Commission
10% probability-weighted constant, max $0.01 per contract
With Robinhood Gold
5% constant ($5/month)
Exchange fee
Up to $0.01 per contract, opening and closing
Where you trade
Inside the main Robinhood app
Routed through
KalshiEX / ForecastEx / Rothera / NADEX
Verified
October 2026
★ Costs
Robinhood prediction market fees explained
Robinhood publishes example commissions for 100 contracts. Note how the 1¢ cap flattens everything between 28¢ and 72¢:
Trade price
With Gold
Without Gold
$0.01
$0.05
$0.10
$0.10
$0.45
$0.90
$0.25
$0.94
$1.00
$0.28–$0.72
$1.00
$1.00
$0.75
$0.94
$1.00
$0.90
$0.45
$0.90
$0.99
$0.05
$0.10
Add the exchange fee (up to another $1.00 per 100 contracts) on top. On a coin-flip contract, that puts Robinhood broadly in line with Kalshi’s and Polymarket’s taker fees; Gold only helps at the extremes.
★ Gold
Is Robinhood Gold worth it for prediction markets?
Only if you trade long shots or heavy favorites in volume. Gold costs $5 a month and halves the commission constant, but the 1¢-per-contract cap means contracts priced between roughly 28¢ and 72¢ cost the same with or without it. If most of your trades are on close games, Gold won’t move the needle on fees – though its other brokerage perks may still make sense.
★ Getting started
How to start trading prediction markets on Robinhood
Open or download the Robinhood app and sign in – you need an individual investing (brokerage) account and must be 18 or older.
Search for “Prediction markets” in the app and open the Prediction Markets Hub.
Pick an event and tap Yes or No – this starts the application for a Robinhood Derivatives account, which is separate from your brokerage account and must be approved.
Once approved, check the price (the implied chance), choose your size, and confirm.
Hold or sell early, and manage everything from the same app as your stocks and crypto.
★ Markets
Markets and events on Robinhood
The Hub covers sports (pro and college football, basketball, baseball, soccer and more, with live scores), plus politics, economics, weather, commodities, entertainment and short-term crypto price markets. Robinhood’s World Cup markets included match winners, totals, player contracts and combos. Example: a Yes at $0.65 implies a ~65% chance and pays $1 if it hits. Fed-rate and economic markets sit alongside the sports tabs.
Robinhood is also the one platform we found with a dedicated Racing tab – though it’s motorsport, not horses. Under Sports → Racing you’ll find F1, NASCAR and IndyCar markets such as the F1 Constructors and Drivers Champion, individual Grand Prix winners, qualifying pole position and podium finishers. Prices read in cents – a Constructors Champion Yes at 80¢ implies an ~80% chance and pays $1 if it lands.
That Racing tab is F1, NASCAR and IndyCar only. Robinhood – like every prediction market – offers no horse racing contracts; racing’s pari-mutuel system is carved out by the Interstate Horseracing Act. To bet the Kentucky Derby or any race, use a licensed ADW racebook. AmWager is our top pick, with a 100% first-deposit match up to $50 for new customers.
★ Trading
How it works inside the Robinhood app
If you’ve used Robinhood for stocks, this is the same muscle memory: tabs at the top switch categories, contracts are priced in cents, and you tap to buy Yes or No. Charts and live scores update in real time, and you can set price alerts. You can sell a position before settlement to lock a gain or cut a loss – the contract isn’t frozen until the event ends. Closing orders need a buyer on the other side, so thin markets can be hard to exit.
★ Legality
Is Robinhood prediction markets legal? Restricted states
Event contracts are federally regulated (CFTC), so Robinhood offers them in most states – but with notable carve-outs that are shifting.
State
Restriction (October 2026)
Maryland
Residents can’t trade event contracts on Robinhood
Nevada
No new sports event contracts since December 1, 2025, after a court ruling against the exchange model
Michigan
No new sports contracts since September 9, 2026, following a state court order
Other states
Contested as regulators and the CFTC fight over jurisdiction; some contracts aren’t offered everywhere
Robinhood is pressing the point in court: in September 2026 Robinhood Derivatives asked the Supreme Court to review the Ninth Circuit’s August ruling for Nevada’s gaming regulators.
This is a fast-moving legal area. The app lists the current restrictions for your location – and if your address on file doesn’t match where you are, you can be blocked. Non-sports markets are often available where sports contracts aren’t.
★ Taxes
Robinhood prediction markets taxes: is there a 1099?
No. Robinhood says it doesn’t report event-contract trades to the IRS and doesn’t issue a 1099 for them. Your annual statement summarizes trades, costs, proceeds, fees and net profit or loss, but it isn’t a tax form. The IRS hasn’t issued specific guidance on event contracts, so keep your own records and speak to a tax professional about how to report gains.
★ Racing
Can you bet horse racing on Robinhood?
No – though Robinhood does have motorsport racing. Its Racing tab covers F1, NASCAR and IndyCar, but there are no horse racing contracts anywhere on it. Horse racing’s pari-mutuel system is carved out under the Interstate Horseracing Act, which keeps it off every prediction market. To bet the Derby or any race, use a licensed racebook.
★ App review
Robinhood app ratings and reviews
Robinhood’s prediction markets live inside the main app, so the store rating reflects the whole Robinhood experience, not just event contracts: 4.3★ on the US App Store from about 4.9 million ratings (October 2026).
What users praise: a clean, familiar interface; the Prediction Markets Hub keeping contracts organized with live scores; and zero extra download for existing Robinhood users.
What draws complaints: these are whole-app reviews, so they include gripes about deposit/notification wording, customer support and options-trading quirks; for predictions specifically, the lack of a landscape layout and the cost without Gold are the common ones. Remember the rating isn’t a verdict on the prediction product alone.
CFTC-regulated routing, with its own Rothera exchange growing
Sell out before settlement
Cons
No prediction-specific bonus
Exchange fee on top of commission, both ways
Maryland blocked; no new sports contracts in Nevada or Michigan
Separate derivatives approval required
No horse racing (motorsport racing only)
★ Verdict
Verdict: who Robinhood is best for
Robinhood is the obvious starting point if you already use the app and want to dip into event contracts without a new login – the experience is clean and the on-ramp is effortless. If you trade seriously, a dedicated exchange like Kalshi gives deeper markets, limit-order tools and maker pricing that can cost less once Robinhood’s exchange fee is added. Good front door; not the cheapest room.
Is Robinhood prediction markets legal in my state?
Event contracts are CFTC-regulated and available in most states, but Maryland residents can’t trade them, Nevada has had no new sports contracts since December 2025, and Michigan none since September 9, 2026. Other states are contested – check the app for your location.
Is Robinhood prediction markets the same as sports betting?
No. You trade Yes/No event contracts on CFTC-regulated exchanges (routed through KalshiEX, ForecastEx, Rothera and others), not a sportsbook bet against the house.
What does Robinhood charge for prediction markets?
A probability-weighted commission of 10% × price × (1 – price) per contract, capped at $0.01, or 5% with Robinhood Gold ($5/month). Exchanges can add up to $0.01 per contract on opening and closing trades.
Does Robinhood have a prediction markets bonus or promo code?
No. Robinhood’s account/transfer bonuses apply to its investing product, not event contracts, and there’s no prediction promo code.
What is the Robinhood promo code for October 2026?
There isn’t one for prediction markets. Any code advertised elsewhere is an affiliate link; the prediction product has no welcome code.
Do I need a separate app for Robinhood prediction markets?
No – they’re in the main Robinhood app under the Prediction Markets Hub, though you must apply for and be approved for a separate Robinhood Derivatives account.
What is the minimum age for Robinhood prediction markets?
18, with an individual Robinhood brokerage account and US residency.
Does Robinhood send a 1099 for event contracts?
No. Robinhood doesn’t report event-contract trades to the IRS or issue a 1099 for them; its annual statement isn’t a tax form, so keep your own records.
What is Rothera?
Rothera Exchange and Clearing is a CFTC-licensed exchange and clearinghouse run through a joint venture between Robinhood and Susquehanna. Robinhood routes a growing share of its contracts there.
Can I bet the Kentucky Derby or horse racing on Robinhood?
No. Robinhood does list motorsport racing (F1, NASCAR, IndyCar), but no horse racing – that’s carved out by the Interstate Horseracing Act and isn’t offered on any prediction market. Use a licensed ADW racebook such as AmWager.
Can I sell a Robinhood event contract early?
Yes – sell back to the market at the current price any time before the event settles, provided there’s a buyer on the other side.
What can I trade on Robinhood prediction markets?
Sports (pro and college), motorsport racing (F1, NASCAR, IndyCar), politics, economics, weather, commodities, entertainment and crypto price markets – all as Yes/No contracts inside the Hub.
Is Robinhood safe for prediction markets?
The contracts run through CFTC-regulated exchanges via a registered FCM, so it’s legitimate – but it’s a trading product and your capital is at risk.
How we checked this page (7 sources)
Offers, codes, fees and state lists are checked against the operators’ own pages and state or federal regulators. Last checked .
Play responsibly. 21+ for sportsbooks (18+ in a few states); 18+ for most prediction markets, 21+ on some platforms and in some states. Only play where it is legal. Gambling problem? Call or text 1-800-GAMBLER.
