Robinhood Expands Prediction Market Presence with Stakes in Crypto.com and OG.com
Retail trading platform Robinhood Markets is expanding its operations in the prediction market by acquiring stakes in Crypto.com and OG.com. As part of this move, the company will route some football event contracts through OG.com, a federally regulated exchange.
The value of the stakes to be acquired by Robinhood will be determined based on Citadel Securities' recent investment in Crypto.com, which values the company at $20 billion. This includes $5 billion attributed to OG.com, which was recently spun off from Crypto.com's structure.
This move is significant for Robinhood as it seeks to tap into the growing market for prediction markets. Event contracts have generated a record $156 million in revenue for the company in the second quarter, and the platform is expanding its offering of election-related contracts ahead of the U.S. midterm elections in November.