Robinhood Expands Prediction Markets Through New Partnerships
Roger McNamee's firm has made an investment in Robinhood’s competitor.
The company is expanding its prediction-markets business through a new partnership with Crypto.com and OG.com, taking equity stakes in both companies while adding another federally regulated venue for event contracts as trading activity on the platform continues to climb. The agreement also involves routing selected football event contracts through OG.com's underlying exchange and clearinghouse.
The rollout comes as the U.S. professional football season gets underway and Robinhood expands the range of sports contracts available to customers. As part of the agreement, Robinhood will take equity stakes in both Crypto.com and OG.com, which was spun off from Crypto.com as an independent trading platform. The investments will be priced in line with Citadel Securities' recent investment in Crypto.com at a $20 billion valuation.
The companies did not disclose the size of Robinhood's investments.