industry/BUSINESS AND FINANCE

Robinhood reports that one billion event contracts have been traded in just six months.

Robinhood announced that one billion contracts have been traded on its platform over the past six months. Vladimir Tenev, the company's CEO, has described event contracts as a powerful asset class.

Written by Casino House Group Editorial Team

Published on May 2, 2025

Summary

Robinhood announced that one billion contracts have been traded on its platform over the past six months.
Vladimir Tenev, the company's CEO, has described event contracts as a powerful asset class.
Despite facing regulatory hurdles, prediction markets are likely here to stay.

Robinhood, a leading platform for event contract trading, claims to have processed one billion event contracts in just six months, demonstrating the enduring popularity of this type of financial instrument.

Robinhood offers insight into the event contracts’ performance

Fewer than half of the contracts pertained to sports events, but they provide valuable insights into the rapidly evolving realm of event contracts, which have significantly impacted the market. Platforms like Kalshi and Robinhood are offering trading options for non-traditional events, such as political events, thereby accessing a novel and influential market segment. This move has been well-received by users. During the Q1 2025 earnings call, Robinhood disclosed recent figures, with CEO Vladimir Tenev expressing enthusiasm for this new opportunity. The company has launched several sports-related event contracts in recent months, covering major American sporting events like March Madness, the NHL, and the NBA. Tenev described this segment as an incredibly powerful, nascent asset class, highlighting the company's ambition to expand within this area. The potential for Robinhood in this emerging field is considerable, with plans to introduce more contracts in the coming months. Revenue from this segment totaled $35 million, although it’s worth mentioning that event contracts are categorized under Other in the company report, making exact figures unclear. Nonetheless, Tenev has a strong grasp of the dynamics in prediction markets. He notes that there are different types of users within the event contract sector; not everyone is drawn to economic prediction markets. Some users are particularly interested in political and sports events.

Despite pushback, prediction markets are likely to remain intact

The prediction market sector is facing challenges from regulators, particularly gambling authorities, who are pushing back against Kalshi. These authorities have deemed Kalshi's event contracts for major sports events to be unlawful. Despite this, Kalshi has successfully secured temporary injunctions in New Jersey and Nevada. These injunctions prevent the local gambling regulators from enforcing cease-and-desist orders that could disrupt the platform's operations in those states. Additionally, other companies, such as Sports Illustrated and DraftKings, are also exploring opportunities in the event contracts market.