Robinhood Is Going Deeper Into Prediction Markets. Its Event-Contract Business Is Growing.

Robinhood is expanding its prediction-markets business through a new partnership with and , taking equity stakes in both companies while adding another federally regulated venue for event contracts as trading activity on the platform continues to Tuesday, Robinhood will route selected football event contracts through 's underlying exchange and clearinghouse, adding another venue alongside Kalshi, ForecastEx and Rothera, the company said in its announcement Tuesday. The rollout comes as the U.S. professional football season gets underway and Robinhood expands the range of sports contracts available to part of the agreement, Robinhood will take equity stakes in both and , which was spun off from as an independent trading platform. The investments will be priced in line with Citadel Securities' recent investment in at a $20 billion valuation, which included a standalone $5 billion valuation for companies did not disclose the size of Robinhood's investments. described the agreement as a multiyear partnership and said it would become an infrastructure and clearing provider for Robinhood's Prediction Markets 's operations include North American Derivatives Exchange, or Nadex, which is registered with the Commodity Futures Trading Commission as a designated contract market and derivatives clearing organization. Robinhood offers prediction markets through Robinhood Derivatives, a CFTC-registered futures commission partnership gives Robinhood another trading venue as prediction markets become an increasingly important part of its business. Customers traded a record 13.6 billion event contracts during the second quarter, more than 10 times the volume from a year earlier, according to Robinhood's second-quarter contracts generated $156 million in transaction-based revenue during the quarter, also more than 10 times the year-earlier level. That put the business ahead of Robinhood's $129 million in equities transaction revenue and $100 million from cryptocurrencies during the period, although options remained its largest transaction business at $342 generated total net revenue of $1.31 billion in the second quarter, up 32% from a year earlier, while transaction-based revenue climbed 44% to $776 -market activity has continued to grow since the end of the quarter. Robinhood said Tuesday that customers have traded more than 45 billion event contracts since the business launched roughly two years ago, including more than 30 billion through the first eight months of 2026. More than 5 billion contracts were traded during the FIFA World Cup brokerage has also been building out its own prediction-market infrastructure. In June, it began routing contracts through Rothera, a CFTC-licensed exchange and clearinghouse independently managed through a joint venture between Robinhood and Susquehanna International Group. Robinhood said in its July earnings release that more than 3.5 billion contracts had been traded through Rothera at that the new arrangement, Robinhood's college and professional football contracts will be routed among , Kalshi and Rothera depending on factors including which contracts are available on each exchange. The company is also expanding the types of football markets offered, including contracts tied to game outcomes and individual player expansion is not limited to sports. Robinhood is rolling out a dedicated hub for the November midterm elections with contracts covering state and federal races, along with interactive election maps and near-real-time voting data once polls contracts are currently being routed through Kalshi and Rothera, with Robinhood saying they could also be expanded to and in the coming markets allow users to trade contracts based on the outcome of future events, including elections, sports contests and economic releases. Contracts typically settle at $1 if the specified event occurs and at zero if it does not, with prices before settlement reflecting what traders are willing to pay for either rapid expansion of the products has also drawn regulatory scrutiny, particularly as platforms move deeper into sports markets. State gaming regulators have challenged some sports event contracts on the grounds that they amount to sports betting, while prediction-market operators have argued that federally regulated derivatives fall under the CFTC's 's latest agreement further ties the brokerage financially to the infrastructure behind those markets. Kris Marszalek, founder and CEO of and , called the deal the beginning of a strategic partnership between the companies, while Robinhood prediction-markets executive JB Mackenzie said routing contracts through multiple venues would create a more diverse company is also preparing to broaden its election offering as the November vote approaches. Some political contracts could later be routed through and , according to the announcement.