Many of who have asked us the question “Is Robinhood legal in Pennsylvania?”, especially in relation to prediction markets. We can confirm that you can trade event contracts on the Robinhood app in PA.
Top Robinhood Alternative for October
Robinhood offers event contracts through an exchange that’s federally regulated by the Commodity Futures Trading Commission (CFTC). As a result, all of the prediction markets on the app are available to you in Pennsylvania if you’re a fully verified user aged 18+. However, the situation is moving fast with prediction markets, so we advise that you keep up to date.
Details
Available Languages
en
Accepts Customers from
US
Show States
AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, DC, WV, WI, WY
Are Robinhood Prediction Markets Available in Pennsylvania?
AS Robinhood’s prediction market platform is a CFTC-regulated derivative, it’s available to PA users aged 18+. The CFTC has federal oversight, meaning that you can trade event contracts in 45 and territories.
Despite this, there are partial restrictions or outright bans on Robinhood’s prediction markets in 6. However, Pennsylvania users don’t yet have any restrictions, meaning you can buy and sell event contracts for all of the available prediction markets on the app.
Here is our experts’ summary of the pros and cons of this prediction market exchange in PA:
Pros and Cons
Available in Pennsylvania
CFTC-regulated exchange
Prediction markets from trusted sources
Risk of losing money
Who can trade event contracts at Robinhood in PA?
You must have a fully verified account to trade event contracts on sports and
economy prediction markets
on the Robinhood app. To be eligible for an account in Pennsylvania, you must meet the criteria in the table listed below:
🔞
Age limit:
18+
🇺🇸
Citizenship:
US citizen or permanent resident
🪪
Accepted photo ID:
US passport, driver’s license, state/national ID cards
🏦
Social Security and tax:
A valid SSN or tax number
🏠
Residential address:
Your legal residential address must be in Pennsylvania or another available US state or territory
💲
Financial suitability:
You need to complete a financial suitability questionnaire detailing your
⏳
Verification time:
Up to one or two weeks
How Do Robinhood Prediction Markets Work?
Robinhood prediction markets work by allowing you to buy and sell event contracts that are tied to future outcomes of events. They cost between $0.01 and $0.99 each, with the value being tied to the real-time probability of the outcome.
For example, let’s say Philadelphia has a 60% chance of winning an NFL game against Dallas. Philadelphia event contracts would each cost around $0.60 each, with Dallas contracts costing roughly $0.40.
Prediction Market Resolution and Payouts
When a prediction market is resolved (or the game is finished in the example above), event contracts that are tied to the correct outcome close at $1.00. Those tied to the wrong prediction finish at $0.00.
This gives you profit for making a correct forecast and a financial loss if you are incorrect. That’s why prediction markets are considered to be a very risky form of trading.
At the end of the day, Robinhood prediction markets are available in Pennsylvania as things stand. That’s because the event contracts are offered on a CFTC-regulated exchange, which has federal oversight.
You can trade event contracts as long as you are a US citizen with a PA residential address and are over 18. Just note that prediction markets are risky, and it may take one or two weeks for your account to be fully reviewed and verified.
Is Robinhood Legal in Pennsylvania? FAQ
Yes, Robinhood prediction markets are available to verified account holders who are aged 18+. The prediction market section of the app is overseen by the CFTC, which is a federal body.
Currently, all Robinhood event contracts and prediction markets are available to verified PA users. That said, the situation is changing, so we recommend that you keep up to date with the availability of specific event contracts in your location.
Robinhood asks for your SSN when you sign up as part of the verification process. This is to comply with the CFTC regulations that oversee the site’s operations.
Buy and sell event contracts
Get the Robinhood app
