Robinhood CEO Predicts Crypto Event-Contracts Will Surpass Sports Betting

Robinhood Chairman and CEO Vlad Tenev told CNBC’s Jim Cramer that crypto‑linked event contracts are already capturing a large share of the platform’s prediction‑market business and that sports wagers could become a minority within a few years.

Growth of Prediction Markets in the US

Prediction markets have become one of the fastest‑growing segments of US trading over the past year. Major players such as CME, Kalshi, Coinbase and several decentralized platforms are competing for market share.

Crypto Contracts Gaining Momentum

Tenev emphasized that crypto event contracts – binary trades on the outcome of a future event – are not merely a rebrand of sports betting. He noted that “other categories like crypto are taking a disproportionate share” and expects sports contracts to become a minority soon.

Regulatory Landscape

Sports‑related event contracts face legal challenges. New York sued Kalshi for over $36 billion and seeks a nationwide ban, while Baltimore sued Kalshi and Polymarket over alleged unlicensed sportsbook activity. New York City’s council is also probing how platforms market prediction contracts. Crypto‑linked contracts have so far avoided these specific disputes, giving them more room to expand.

Robinhood’s Strategic Moves

Robinhood has formed a joint venture with market maker Susquehanna to acquire crypto exchange MIAXdx (formerly LedgerX) and plans to launch its own prediction‑market infrastructure. The company reports roughly nine billion event contracts traded on its platform in the past year, calling prediction markets its fastest‑growing revenue line.

Outlook

While the timeline for crypto contracts overtaking sports contracts remains unverified, Robinhood’s investments suggest it is positioning itself for a shift toward crypto‑driven prediction markets.