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Robinhood (HOOD) is now allowing retail traders to bet on election outcomes. Kamala Harris and Donald Trump contracts began rolling out to a limited number of customers on Monday.
Catalysts Hosts Josh Schafer and Seana Smith report more on the story.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Melanie Riehl
Let's also turn to Robin Hood, and now allowing retail traders. This is an interesting one, to bet on election outcomes. Kamala Harris and Donald Trump contracts will begin rolling out to a limited number of customers today. Of course, this comes on the heels of a recent federal court ruling here effectively legalizing election betting in the US. This is the launch of Robin Hood now into this space, and this could really or not could. This does, I guess the question is what the interest is going to look like. But this does potentially open up these types of betting, and this type of access to a much wider audience.
The markets have been available, right? Kalshi comes to mind. Interactive Brokers has gotten in this space. Robin Hood, perhaps the most consumer-facing name though, I would probably argue the most name brand recognition here with a lot of people that probably watch our program that might already have money in a Robin Hood account, right? And what's interesting to me here, Sienna, is two things. One, if you've been betting on something like DJT or all of these Trump trade aspects to perhaps bet on who's going to win, well, here's your shot to make a real bet. This is just straight up betting, right? You can just bet that Trump is going to win, or Harris is going to win, and you can actually make that play rather than DJT stock popping 13% today off a rally. You can actually make a straight bet, right? And so that's interesting to me. Also, interesting to see Robin Hood getting into this business. This reminds me a little bit more of a sports book casino kind of business, right? Because what happens here is you set the odds, and then next Tuesday, there is a definitive outcome, and you owe people money for that. That is not how operating a stock exchange works. There's not a certain day, unless you're trading options, where everyone is going to be owed money. So it's an exposure to a little bit of a different financial model, at least in my opinion is the high-level read here. So be interesting to see if they get further into that.
It is, and then, and then exactly, when you talk about further into that, just what exactly maybe this could ultimately look like as we talk about various events down the line. What else are we going to bet on other than the election?
I don't know. That's what I was trying to figure out. You actually brought up a good idea during the break. I don't know if you
The Oscars? Something like that.
Some of that is only legal in certain states though, too. So betting on events because people have impact on events, right? That's easier for us to control. That's not legal in as many states as say sports gambling is. So it would take further legalization for more events to be able to come. So it'll be interesting to see how that all develops. But for now, we have a week to bet on the election if you want to on Robin Hood.
People's Choice Awards was one of the suggestions from the call, from the newsroom, too. I mean, the options are endless potentially. Yeah.
I mean, there's plenty of things. It's just, will people actually bet on them?
Exactly, and what exactly the interest is going to look like. Again, these contracts are going to begin rolling out today to a limited number of customers, like we said, who, what Robin describes as apply and meet certain criteria. So we will see what exactly that entails. All right, Josh, great stuff. Thanks so much, Pete.