Robinhood Bolsters Prediction Market Push with Crypto.com and OG.com Partnership

Retail trading platform Robinhood Markets has expanded its prediction market push by partnering with Crypto.com and OG.com. The partnership will allow Robinhood to route some football event contracts through OG.com's federally regulated exchange, while also taking equity stakes in both platforms.

The stakes in OG.com and Crypto.com are valued at $20 billion, including a $5 billion valuation for the recently spun-off OG.com. This move is part of Robinhood's strategy to further expand into prediction markets, which have gained popularity since the 2024 U.S. presidential election.

Prediction markets offer 'yes' or 'no' contracts on sports, political, and economic events, with proponents arguing they harness the 'wisdom of crowds'. However, critics liken them to gambling, and regulators have stepped up scrutiny over insider trading.