"Prediction markets, which allow users to bet in real time on everything from elections to the Super Bowl, are suddenly big business and growing fast. Robinhood underscored that during the company's Q3 earnings announcement on Wednesday afternoon, stating that prediction markets have grown to $100 million in annualized revenue, and that revenue in October from the category eclipsed that of the entire previous quarter."
"When we think about vertical integration ... one thing we look at is, is the vertical integration going to be accretive to us? Is it going to be something that is increasingly commoditized over time? And my feeling for how this is going to evolve, in prediction markets at least, is there's going to be a lot of entrants in the space, a lot of exchanges,"
Prediction markets have become a significant and rapidly expanding revenue source at Robinhood, totaling $100 million in annualized revenue and producing October revenue that exceeded the prior quarter. Robinhood currently provides most prediction market offerings through a partnership with Kalshi rather than building its own exchange. Kalshi and Polymarket surged in popularity in 2024 during the U.S. presidential campaign after a court ruling loosened prior regulatory constraints on such markets. Robinhood expects many new entrants and plans to leverage its distribution to form partnerships instead of vertically integrating or directly competing with established prediction market exchanges.
Read at Fortune
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