Piper Sandler Anticipates Robinhood's Prediction Market Growth Ahead of Football Season
Piper Sandler analyst Patrick Moley expects Robinhood’s prediction market revenue to rise significantly as the football season begins, driven by increased volume on Rothera. The joint venture between Robinhood and Susquehanna has received regulatory approval from the Commodity Futures Trading Commission (CFTC) for offering contracts related to football wins and spreads. With 23% of prediction market volume shifting to Rothera since June, Moley raised his earnings forecasts for Robinhood in 2026 and 2027 by 5% and 7%, respectively. The firm used Kalshi as a proxy to estimate that between September and December, Robinhood users could trade around $320 million worth of prediction contracts. Moley noted football accounted for significant volume on Kalshi in the past but expects it to be less dominant this time due to broader contract offerings beyond major sports.
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Topics: CFTC approval earnings forecast football season impact Robinhood Rothera