Robinhood has taken equity stakes in Crypto.com and its newly spun-off prediction market platform OG.com as part of a multi-year deal to use OG.com’s regulated infrastructure for event contracts.
Under the agreement, Robinhood will route retail event contracts through OG.com’s Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange and clearinghouse, with the rollout beginning Tuesday for eligible US customers.
According to Tuesday’s announcement, the online brokerage will receive initial equity stakes in both Crypto.com and OG.com, with the stakes priced at the valuations established by an earlier Citadel Securities investment in the platforms. The companies did not disclose the size or value of Robinhood’s holdings.
The deal follows OG.com’s spin-off from Crypto.com at a $5 billion valuation and comes less than two months after reports that Robinhood was in talks with Crypto.com to expand its prediction markets offering.
OG.com will operate independently from the crypto exchange, with CEO Kris Marszalek saying the platform plans to expand beyond prediction markets into futures and perpetual contracts.
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Latest move expands prediction market partnerships
Robinhood launched its prediction markets hub in March 2025 with CFTC-regulated exchange Kalshi and later expanded its prediction market infrastructure.
The business has grown rapidly. Event contracts generated $156 million in revenue for Robinhood in the second quarter, up more than tenfold from a year earlier and surpassing its $129 million in equities transaction revenue and $100 million from crypto.
Bernstein analysts estimated in July that Robinhood’s revenue, including prediction markets, could reach $1.7 billion by 2028.
To be sure, prediction market operators have also faced a growing number of legal challenges from US states seeking to apply their gambling laws to sports event contracts.
In April, a Nevada judge extended a ban preventing Kalshi from offering event contracts in the state without a gaming license, finding that the products were effectively indistinguishable from traditional betting. The ruling rejected Kalshi’s argument that the contracts are swaps subject exclusively to CFTC oversight.
The legal wrangling escalated last week with New Jersey petitioning the US Supreme Court to weigh in on whether states can regulate sports contracts offered on CFTC-regulated prediction markets.
In a post announcing the move, New Jersey Attorney General Jennifer Davenport said companies such as Kalshi claim to offer legal sports betting nationwide while refusing to comply with state gambling laws, calling on the Supreme Court to resolve the jurisdictional dispute.
Source: Jennifer Davenport