Robinhood says its expanding prediction markets business has become one of the company’s fastest-growing segments, with its in-house exchange Rothera now ranking among the three largest prediction market exchanges in the United States.
During the company’s second-quarter earnings call, Robinhood CEO Vlad Tenev highlighted the rapid progress of Rothera, describing it as a key part of the firm’s long-term strategy to strengthen its position in regulated event contracts. President and COO Steve Quirk added that the platform has already reached the number three position by trading volume among US prediction market exchanges.
Robinhood officially began routing event contracts through Rothera in June after launching the CFTC-regulated exchange as a joint venture with Susquehanna International Group. Initially supporting selected FIFA World Cup and Major League Baseball markets, the company said it plans to steadily expand the range of available contracts.
The brokerage’s second-quarter financial results reflected the growing contribution from event contracts. Robinhood generated $156m in revenue from event contracts and other trading instruments during the quarter, helping transaction-based revenue climb 44% year-on-year to $776m despite weaker cryptocurrency trading activity. Overall, the company exceeded Wall Street expectations for quarterly earnings as increased activity in equities, options and prediction markets offset a sharp decline in crypto-related revenue.
Executives said prediction markets continue to attract strong customer engagement and are becoming an increasingly important part of Robinhood’s product offering. Analysts have also pointed to the segment as a significant future growth driver, with some forecasting prediction markets could eventually generate more revenue than the company’s cryptocurrency business.
Robinhood’s ambitions extend beyond operating a single exchange. The company continues to work with multiple regulated marketplaces, including Kalshi and ForecastEx, while expanding Rothera’s role within its own ecosystem. Reports indicate Robinhood is also exploring additional partnerships to broaden its event contract offering as competition intensifies across the rapidly growing US prediction markets sector.
The wider market has seen significant momentum throughout 2026, driven largely by sports events such as the FIFA World Cup. While Kalshi remains the dominant operator, Rothera has quickly established itself as a meaningful competitor, reflecting Robinhood’s broader push to become a leading destination for retail prediction market trading.