Robinhood Ventures into Sports Betting with Event Contracts for Super Bowl LIX
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Robinhood Markets (HOOD) has announced the launch of event contracts for Super Bowl LIX, marking its entry into the sports betting arena. Customers can now wager on the outcome of the game between the Kansas City Chiefs and the Philadelphia Eagles.
This move follows Robinhood's successful debut of event contracts for the presidential election in October 2022. The platform witnessed significant trading volume during that event, with over 400 million contracts traded.
Robinhood CEO and Co-Founder Vlad Tenev intends to expand the platform's event contracts business and diversifying its offerings beyond stock trading.
In January, Robinhood launched futures and index options trading, while in March, it debuted a credit card offering 3% cashback. Additionally, it acquired crypto exchange Bitstamp in June 2024 and AI-powered investment research firm Pluto in July.
Analysts believe Robinhood's efforts to expand its product suite could result in significant growth. JPMorgan analyst Ken Worthington highlights the company's progress in establishing its operations, including the launch of new products and the development of its cryptocurrency and derivatives trading capabilities.
Analyst Commentary:
"Ultimately, we think Robinhood has made notable progress in legitimizing its operations vs. its primary reliance on meme-stock trading three years prior. In particular, new product development including its credit card, solicitation of active traders, the buildout of its cryptocurrency platform, and the buildout of the derivative trading (including the potential for event-driven products/betting products) over time," notes JPMorgan analyst Ken Worthington.