Robinhood CEO Says Crypto Contracts Could Overtake Sports on Prediction Platform
Robinhood CEO says crypto contracts may soon outpace sports
Robinhood CEO Vlad Tenev says crypto-linked prediction contracts are already taking an outsized share of the platform's event-contract business. He expects sports wagers to fall into the minority within a few years.
Tenev made the remarks during an appearance on CNBC's "Mad Money" with Jim Cramer.
Key numbers behind the shift
- Event-contract revenue reached $156 million in Q2 2026, more than ten times the year-earlier figure.
- Prediction markets became Robinhood's fastest-growing business line, even as crypto trading revenue declined.
- Contracts were traded 4.7 billion times in August alone, roughly 15 times the volume from August 2025.
What Tenev told CNBC
Tenev described crypto contracts as currently grabbing a disproportionate slice of Robinhood's prediction markets. He said: "I think within a few years, sports will actually be in the minority, similar to active trading at large."
He called sports contracts a "wedge" that brought people into the platform and built liquidity, but said the industry is expanding far beyond sports. Prediction markets, also called event contracts, let people trade yes-or-no bets on whether something will happen, such as a Federal Reserve rate decision or an election. These trades are regulated as derivatives by the Commodity Futures Trading Commission.
Tenev also said crypto contracts let users "directly monetize an idea or an insight," pointing to the Clarity Act, a bill in Congress that would settle which federal regulator polices digital assets, as an example of a topic with a market on it.
How Robinhood built its prediction-markets platform
Robinhood built its event-contract hub on top of Kalshi, the exchange that won a legal battle against the CFTC to offer election-related contracts. Robinhood then layered on Rothera, its own CFTC-licensed joint venture with trading firm Susquehanna, which was tested during this year's World Cup.
This month, Robinhood went further by taking minority equity stakes in Crypto.com and its prediction-market spinoff OG.com, adding a third partner to help clear and settle trades.
Regulatory pushback and growing competition
Lawmakers have introduced more than 10 bills since January targeting prediction markets. The PREDICT Act, for example, would ban members of Congress and senior officials from trading contracts tied to political events.
Critics argue that stacking sports and political wagers next to retirement accounts blurs the line between investing and gambling. This tension is still being sorted out by regulators.
Competition is also intensifying. CME, Coinbase, and several decentralized platforms are all competing to sign up traders for event contracts, a category that crypto-native platforms like Polymarket helped popularize before Wall Street brokerages entered the space.
What is confirmed
- Event-contract revenue at Robinhood surged more than tenfold year over year to $156 million in Q2 2026.
- Contracts traded 4.7 billion times in August, about 15 times the August 2025 volume.
- Robinhood partners with Kalshi, Rothera, and holds stakes in Crypto.com and OG.com.
- Tenev made the statements about crypto overtaking sports during his CNBC interview.
- More than 10 bills targeting prediction markets have been introduced since January.
What is still unclear
The timeline for sports contracts becoming the minority is Tenev's own estimate. He described it as happening "within a few years," but this is his projection, not a confirmed milestone.
The outcome of the regulatory debate remains uncertain. It is unclear how the proposed legislation will be resolved, and whether the line between investing and gambling will be formally redrawn.
Why it matters
Prediction markets have become Robinhood's fastest-growing business line at a time when crypto trading revenue is falling. The shift toward crypto contracts signals a changing mix in how people use the platform. At the same time, growing regulatory scrutiny and new competitors entering the event-contract space could reshape the market significantly.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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