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4w ago

Robinhood Hits 4 Billion Event Contracts, Eyes U.K.-Europe Launch for Prediction Markets

Expansion hinges on whether foreign regulators treat event contracts as financial instruments or gambling products.

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Just months after cutting 9% of its workforce, Robinhood on August 2 announced plans to lay off another 23%. (Adobe Stock via CNN)

Overview

  • CEO Vlad Tenev said customers have traded more than 4 billion event contracts in total, including over 2 billion in the third quarter alone.
  • Robinhood shares jumped roughly 12% to record highs after the milestone, extending a yearlong rally as investors reward the new business line.
  • The company offers event contracts in the U.S. through CFTC-regulated partners such as Kalshi, with recent additions including pro and college football markets.
  • Executives confirmed discussions with the UK Financial Conduct Authority about a localized rollout in Europe, with timing dependent on regulatory classification and approvals.
  • Analysts estimate the segment is generating meaningful fees, including about $25 million for 3Q at $0.01 per contract and some projecting an annualized run rate above $200 million, while new Kalshi parlays pressured sportsbook stocks DraftKings and Flutter.