Robinhood CEO Claims States Oppose Prediction Markets to Protect Gambling Tax Revenue
Robinhood's CEO, Vlad Tenev, stated that states are opposing prediction markets primarily due to the financial incentive of collecting taxes from state-regulated gambling operations. He highlighted how states like New York and Illinois generate significant revenue through sports betting taxation—New York alone contributed about a third of national tax collections in 2025 with over $1 billion paid in state taxes. Prediction markets, such as Kalshi and Polymarket, are growing rapidly but remain unregulated at the state level. In July, these platforms reported record notional trading volume despite declining open interest. The Commodity Futures Trading Commission (CFTC) has taken legal action against New York for enforcing its gambling laws on prediction market contracts. Legal outcomes have been mixed: a federal judge denied an emergency motion to block enforcement in early August, while another ruled that the Commodity Exchange Act does not override state gambling law. The Supreme Court is yet to weigh in.
Topics: prediction markets Robinhood CEO comments state taxation