Trading volume in prediction markets hit 11 to 12 billion contracts on Robinhood’s hub during its first year, reaching revenue levels that rival some of the platform’s crypto trading quarters. This surge signals a serious shift in market interest, with both Robinhood and Crypto.com betting heavily on these event-based contracts tied to outcomes like elections and sports.
Building Market Presence Through Partnerships and Platforms
Robinhood took the lead in 2025, launching its Prediction Markets Hub through a collaboration with Kalshi, one of the few exchanges regulated by the U.S. Commodity Futures Trading Commission (CFTC). The partnership extended into 2026 with Robinhood teaming up with Susquehanna to create its own CFTC-licensed futures and derivatives exchange, expanding their footprint beyond retail event contracts.
Crypto.com entered this arena in February 2026 with OG, a CFTC-regulated prediction market that positions the company directly against Robinhood and other regulated players. The move signals a strategic push into a market that’s rapidly evolving and growing in both volume and complexity.
Regulatory Challenges and State-Level Roadblocks
The regulatory landscape, however, remains fragmented and contentious. Several U.S. states specifically target sports-related contracts, treating them as unlicensed gambling, which has led to legal hurdles for both platforms. To tackle this, Robinhood, Coinbase, and others established the Coalition for Prediction Markets in late 2025. This advocacy group aims to unify federal oversight and prevent a patchwork of state regulations that could hinder innovation.
Investor participation appears solid where these markets are integrated into platforms with large user bases. Robinhood’s data shows engagement spanning diverse event categories, far beyond traditional election betting. Still, the risk of adverse state rulings looms, potentially forcing product changes or pulling out of key markets. How the Coalition for Prediction Markets shapes policy over the next 12 to 18 months will be critical in determining whether this momentum sustains or stalls.
