Robinhood CEO Predicts Crypto Event Contracts Will Overtake Sports Betting

Robinhood’s chief executive Vlad Tenev told CNBC’s "Mad Money" that crypto‑related prediction market contracts are rapidly gaining a larger share of the broker‑dealer’s event‑contract business, and that sports betting could become a minority segment in the near future.

Fast‑growing event‑contract revenue

Event‑contract revenue at Robinhood jumped more than tenfold year over year to $156 million in the second quarter of 2026, making it the company’s fastest‑growing line of business. In August 2026, contracts were traded 4.7 billion times, roughly 15 times the volume recorded in August 2025.

Crypto contracts gaining a “disproportionate share”

Tenev said crypto categories are taking a “disproportionate share” of the prediction‑market platform and that, within a few years, sports contracts may fall into the minority. He described sports contracts as a “wedge” that helped bring liquidity and users to the market, but noted that the industry is expanding well beyond sports.

Regulatory backdrop

Prediction markets are regulated as derivatives by the Commodity Futures Trading Commission (CFTC). The platform’s event‑contract hub is built on Kalshi’s exchange and includes a joint venture with Susquehanna (Rothera). Robinhood also took minority equity stakes in Crypto.com and its prediction‑market spin‑off OG.com to broaden trade clearing and settlement.

Competitive landscape

Other firms, including CME, Coinbase and several decentralized platforms, are also pursuing event‑contract traders. Crypto‑native platforms such as Polymarket helped popularize the category before traditional broker‑dealers entered the space.

Regulatory scrutiny

Lawmakers have introduced multiple bills since January targeting prediction markets, including proposals to ban members of Congress from trading contracts tied to political events. Critics argue that mixing sports and political wagers with investment products blurs the line between investing and gambling.

Outlook

Tenev emphasized that ownership of high‑quality financial assets is central to Robinhood’s mission, linking the growth of crypto event contracts to broader goals such as the company’s 3 % retirement‑contribution match.