Trading platform Robinhood has launched presidential election event contracts ahead of the 5 November election.
The contracts were launched yesterday, 28 October, for a select group of customers, enabling them to speculate on the election’s outcome.
Participants can trade based on their forecasts for “who will win the 2024 presidential election,” with two available contracts – one for Kamala Harris and another for Donald Trump.
This is being offered through Robinhood Derivatives, which the firm also detailed will facilitate the upcoming introduction of index options and futures at its HOOD Summit in Miami two weeks ago.
In its latest announcement, Robinhood wrote: “We believe event contracts give people a tool to engage in real-time decision-making, unlocking a new asset class that democratises access to events as they unfold.”
Event derivatives trading involves the buying and selling of contracts that allow traders to speculate on the outcomes of specific events, such as sports games, corporate earnings announcements, or major geopolitical developments.
In September, a federal judge decided that Americans could use derivatives for event betting, which was a setback for the US Commodity Futures Trading Commission which had been trying to prevent this. In October, an appeals court supported the judge’s ruling.
Recent polls indicate that Harris has a slight lead over Trump in a closely contested presidential race. Both candidates are enlisting celebrities to boost their appeal and chances of winning.
Notable appearances include former WWE star Hulk Hogan speaking at a Trump rally and billionaire Elon Musk joining him. On the other side, Harris has received support from former WWE wrestler Dave Bautista, along with other celebrities.
This unique intersection of pop culture and politics has drawn considerable attention to the election, prompting gambling companies to provide odds on the race’s outcome. Ahead of the vote, Christian Lee, Business Journalist for GamblingTV, recently spoke to Ak Bets’ Head of Strategy and Performance, Joe Lee, about how the operator is leveraging the race to become president on its platform.
Other notable stakeholders involved in the race are those in the crypto sector. Crypto interests have seen political action committees established, campaigning for congressional candidates seen as the most favourable to the industry. House of Representatives elections will also take place on 5 November.
