Robinhood's Prediction Market Revenue Hits $156M Amid Diversification Push

Roninhood has been expanding its prediction market offerings beyond sports, with a growing focus on crypto-linked event contracts. In the second quarter, event-contract revenue reached $156 million and contracts traded hit a record 13.6 billion.

CEO Vlad Tenev expects sports to eventually make up a minority of the business, as the company diversifies into non-sports categories such as economics. Robinhood's joint venture with Susquehanna International Group has also led to the creation of Rothera, a CFTC-licensed exchange and clearinghouse that generated $17 million in revenue for the quarter.

However, sports contracts remain a legal flashpoint, with Missouri ordering Robinhood and other operators to stop offering sports event contracts without a state sports-wagering license. The company is appealing litigation in Michigan and has petitioned the U.S. Supreme Court after the Ninth Circuit affirmed the denial of preliminary relief.

Interactive Brokers and Coinbase are also chasing customers in this space, with Interactive Brokers assembling a unified interface spanning Kalshi, CME Group, and its own ForecastEx platform, and Coinbase folding prediction markets into its Everything Exchange strategy.