Robinhood Event Contract Trading Surges as Prediction Markets Outpace Crypto and Stock Revenue
Robinhood (HOOD) is seeing significant growth in its event-contract trading segment, which involves yes-or-no bets on real-world outcomes. In October, event contract volume reached approximately 5.9 billion contracts, a 136% increase year-over-year. This segment has become a vital revenue driver; in the third quarter, it generated $173 million, surpassing both crypto trading ($120 million) and stock trading ($121 million) revenues. The company is further vertically integrating by owning 90% of Rothera, a federally licensed exchange via a joint venture with Susquehanna International Group. This allows Robinhood to capture revenue both as the brokerage platform and the exchange venue. However, significant regulatory risks persist, as several states are challenging whether these sports-related contracts constitute illegal gambling.
Tickers: $HOOD
Topics: event contract trading revenue growth sports betting regulation trading volume
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Part of the story Robinhood Event Contract Trading Surges as Prediction Markets Outpace Crypto and Stock Revenue (3 articles)