Robinhood CEO Says Crypto Contracts Will Outpace Sports in Prediction Markets

Robinhood (HOOD) CEO Vlad Tenev said crypto contracts already account for a disproportionate share of the brokerage's prediction-markets business and that "sports will actually be in the minority" within a few years. He said sports serves as a wedge for liquidity and users. Event-contract revenue jumped more than tenfold year over year to $156 million in the second quarter, the company's fastest-growing line. Contracts traded 4.7 billion times in August, about 15 times the year-earlier volume, while crypto trading revenue declined over the same period. Robinhood's prediction business now runs on three rails: Kalshi, its own CFTC-licensed venture Rothera with Susquehanna, and minority stakes taken this month in Crypto.com and spinoff OG.com. The shift toward crypto carries legal weight, as sports contracts face state gambling challenges, including a Ninth Circuit ruling allowing Nevada to regulate Kalshi.