US brokerage apps bring prediction markets into mainstream investing

By 2025-2026 prediction markets moved from a niche hobby of economists and crypto traders to a widely used financial tool in the United States. The pivotal shift occurred when Robinhood integrated Kalshi's event‑contract platform into its app, allowing tens of millions of funded brokerage accounts to trade contracts on outcomes such as Federal Reserve decisions, elections and box‑office results without needing a separate wallet or crypto account. Other regulated venues, including Kalshi (CFTC‑registered), and formerly offshore crypto platform Polymarket, as well as long‑standing markets like PredictIt and the Iowa Electronic Markets, have been part of the expanding ecosystem.

The growth is driven by the convenience of trading prediction contracts alongside stocks, the ability to hedge economic forecasts, and a feedback loop where quoted prices in news stories attract more traders, sharpening odds. However, the surge into sports‑related contracts has sparked a regulatory debate: while proponents argue these contracts are exchange‑traded derivatives under federal oversight, several states contend they resemble traditional betting and should be subject to state gambling laws. The outcome of this dispute will shape the future scope of prediction‑market offerings in the U.S. financial landscape.