Robinhood Expands Prediction Markets Into Sports and Custom Contracts

Robinhood expands prediction markets into sports with player-performance and multi-event contracts, AI tools and growth — amid mounting regulatory scrutiny.

Robinhood is pushing deeper into prediction markets, betting that customers want to trade on everything — including sports. The trading app now offers contracts tied to individual professional football players’ performances and pre-packaged game combos. Early next year, users will be able to bundle up to ten outcomes — winners, spreads, totals — into a single custom contract.

Since launching prediction markets in late 2024, Robinhood has seen rapid adoption. The company reported 2.3 billion prediction-market contracts traded in Q3 2025 and 2.5 billion in October alone. Sports contracts top the charts in popularity, tapping into the same enthusiasm that drives sports betting: Pew research finds about 22% of U.S. adults bet on sports annually, rising to 36% among men under 30.

Robinhood emphasizes that these offerings are markets, not traditional sportsbooks. Prediction markets let users set prices through buying and selling — the platform earns transaction fees rather than taking sides on outcomes. Still, regulators in several states disagree. New Jersey, Nevada and others have issued cease-and-desist letters. Robinhood has responded with lawsuits and remains determined to expand: it plans to open its own exchange with Susquehanna International Group and launched a sports newsletter, Scoreboard, via its Sherwood news site.

The platform’s expansion mirrors a larger industry trend. Competitors like Kalshi, Polymarket and new entrants from Fanatics and Coinbase are all exploring decision markets. Kalshi has sought full federal regulation through the CFTC, while Polymarket’s 2024 election volume helped bring prediction markets into mainstream view. Robinhood’s earlier partnership with Kalshi hit regulatory friction when the CFTC raised concerns about certain sports contracts, but companies continue to test legal boundaries and push for clear rules.

Robinhood’s strategy also fits a broader business pivot: after early controversy over gamified features and meme-stock frenzies, the company has leaned into its most active traders. Executives say prediction markets, crypto, AI-powered investing assistants and personalized portfolio digests are ways to keep engaged customers on the app.

The future could see prediction contracts spanning sports, politics, climate and finance all in one place. For now, Robinhood’s bet is simple: give users flexible ways to trade real-world outcomes, and let the markets set the odds — even as legal debates over whether decision markets equal gambling continue to play out.

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