Robinhood Bolsters Prediction Market Push with Crypto.com and OG.com Tie-Up

Retail trading platform Robinhood is expanding its push into prediction markets by partnering with Crypto.com and OG.com. The partnership involves routing some football event contracts through OG.com's federally regulated exchange, as well as taking equity stakes in both platforms.

The stakes will be priced at $20 billion for Crypto.com, which includes a valuation of $5 billion for the recently spun-off OG.com. This move is part of Robinhood's efforts to expand its event contracts business, which generated a record $156 million in revenue during the second quarter.

Robinhood is also expanding its election-related contracts ahead of the November midterms with a dedicated hub for state and federal races. The prediction markets products have gained popularity in recent years, with proponents arguing they harness the 'wisdom of crowds', while critics liken them to gambling.