Robinhood’s Event Contracts Reach $156 Million as Sports Face Scrutiny

Robinhood is expanding its prediction-market offerings beyond sports, with crypto-linked event contracts driving most activity on the platform. CEO Vlad Tenev anticipates sports contracts will eventually comprise a minority of the business. Event-contract revenue reached $156 million in Q2, with traded contracts hitting a record $13.6 billion.

Both figures represent more than tenfold growth year-over-year. In June, Robinhood began directing event contracts to Rothera, a CFTC-licensed exchange and clearinghouse managed through a joint venture with Susquehanna International Group, which generated $17 million of that quarter's event-contract revenue. The company has also partnered with Crypto.com's prediction-market infrastructure to build a broader ecosystem.

However, sports contracts remain a legal issue, as Missouri has ordered Robinhood to stop offering sports event contracts without a state sports-wagering license, and the company is appealing litigation in Michigan. Nevertheless, diversifying into non-sports categories could help Robinhood reduce its regulatory exposure. Interactive Brokers and Coinbase are also pursuing the same customers, with Interactive Brokers offering a unified interface that includes various prediction markets and Coinbase expanding its Everything Exchange strategy.

Robinhood's success will depend on whether non-sports contracts can grow fast enough to offset regulatory challenges in sports without slowing business growth.