- The brokerage home will enable prediction market shoppers to construct their very own NFL parlays
- Like different prediction market operators, Robinhood calls these “combos”
- Firm previewed the providing at its December YES/NO occasion
Robinhood Markets (NASDAQ: HOOD) introduced Friday that it’s permitting prediction market shoppers to construct their very own NFL parlays. Simply don’t name these bets parlays.
A Robinhood brand. The corporate will enable prediction market prospects to construct their very own NFL parlays. (Picture: Google Play)
With the brokerage agency’s new “Customized Combos” function, eligible shoppers can mix as much as 10 legs in a single wager on an NFL sport. So the brand new sports activities derivatives seem like akin to same-game parlays, or multileg bets involving one sport.
Such wagers are more and more fashionable with leisure bettors and have been progress drivers for conventional sportsbooks. Robinhood shoppers who’re eligible for prediction markets buying and selling can combine occasion contracts akin to sides, totals, and participant propositions into their “combos.”
For instance, forward of this weekend’s matchups, prospects may create a combo that has Buffalo to win, Josh Allen to attain a TD, and Bo Nix to throw for over 200 yards (and extra), multi functional contract. To payout, all contracts should be right,” in line with a Robinhood consultant.
The corporate made the announcement the day earlier than the beginning of the NFL divisional spherical, which brings 4 video games on the weekend slate, probably stirring sturdy curiosity within the new providing.
Robinhood Must Get Parlay Pricing Proper
The union of prediction markets and sports activities derivatives ramped up in earnest this soccer season, and if there’s one factor the business is getting unsuitable, it’s pricing. Translation: it’s changing into more and more obvious that between charges and criticized odds on prediction markets, it makes extra sense for sports activities bettors to stay with conventional sportsbooks.
That’s to not say prediction markets gained’t enhance that state of affairs over time, nevertheless it’s potential that as extra of those exchanges enterprise into combos/parlays, their pricing fashions will draw elevated scrutiny as a result of savvy bettors know parlay odds favor the home, not bettors. Some argue that something greater than a three-team parlay topics bettors to odds that aren’t near true odds.
How prediction markets value accumulator wagers is pertinent to shoppers for different causes, not the least of which is that with every added leg, the guess’s issue will increase whereas the likelihood of success decreases.
Moreover, parlays have adverse anticipated worth, or –EV, which means that over the long run, most bettors who ceaselessly use parlays will lose cash.
Robinhood is a Distinguished Prediction Markets Participant
Final November, the monetary providers firm stated that it’s partnering with Susquehanna Worldwide Group to launch its personal prediction markets platform, although it maintains partnerships with ForecastEx and Kalshi.
The next month, Robinhood held the aforementioned YES/NO occasion at which it detailed wider-ranging prediction market efforts, together with deeper strikes into sports activities derivatives.
Because the finish of 2024, over 1 million Robinhood shoppers traded greater than 11 billion occasion contracts on the platform, making prediction markets the corporate’s fastest-growing enterprise in income phrases. Some analysts undertaking that when the US prediction markets business matures, it is going to be dominated by 5 corporations — DraftKings, FanDuel, Kalshi, Polymarket, and Robinhood.
