Prediction Markets Emerge as Robinhood’s Fastest-Rising Revenue Engine
In less than a year, into prediction markets has gone from a side bet to a primary strategy. By 2025, this section will make over $100 million a year. Company leaders have said that this is the quickest-growing line in Robinhood’s history, even quicker than the ahead crypto and options surge on the app.
Internal data show that billions of event contracts are changing hands as retail traders bet on everything from sports wins to elections and inflation prints.
In the last few months, prediction-market activity has made more money for new users than established categories. This has assisted Robinhood’s revenue mix grow beyond just stock commissions and payment for order traffic.
The LedgerX Deal Shows That Institutions Are Pushing For It
The broker’s most recent move is a joint transaction with Susquehanna to purchase about 90% of LedgerX. This is a derivatives platform that is licensed by the and was once linked to but is now owned by Miami International Holdings.
The deal gives Robinhood and Susquehanna the regulatory support and infrastructure they need to move further into event-driven futures and options, whereas MIAX only has a modest minority stake.
Robinhood to use LedgerX to begin a separate platform and clearinghouse for futures and derivatives. The platform should be up and running by 2026.
Susquehanna is already a prominent liquidity provider in the prediction markets industry. From the begin, it is likely to be a key market maker, assisting to narrow spreads and sustain flow from large institutions.
Regulatory Winds and Rules That Are Changing
Robinhood’s prediction markets are growing rapidly, at the identical time as there are a lot of changes in US regulations. For example, court decisions have made it easier to bet on elections. Those improvements have made it possible to have regulated event contracts on sports, political races, and macroeconomic data.
This has made it harder to tell the difference between gambling and speculative . Analysts say the company’s ability to operate through regulated venues like Kalshi and, soon, LedgerX offers it a head begin over rivals waiting for clearer laws.
However, watchdogs in some jurisdictions still classify prediction markets as gambling products, posing compliance and reputational issues as Robinhood viewks worldwide expansion.
Event Trading Changed The Revenue Mix
Financial reports suggest that prediction markets assisted Robinhood achieve record quarterly results, with transaction-based income more than doubling year over year and overall net profit reaching new highs in 2025. The company now views prediction markets as a key part of its more diverse business model, alongside , financial products, and subscriptions.
Both management and external analysts view event contracts as a way to grow and retain customers. They do this by offering trades based on sports and politics that are more like entertainment than investment.
Robinhood is making prediction markets a core part of its next phase of revenue growth, not simply a side product. With LedgerX on board and institutional-grade infrastructure on the way, this is what the company is doing.
