Key Takeaways
- Robinhood has secured equity positions in both Crypto.com and its prediction market spinoff OG.com through a comprehensive multi-year strategic partnership.
- The platform will route event contracts via OG.com’s derivatives exchange regulated by the CFTC, with deployment starting Tuesday for qualified American users.
- The equity investment values align with Citadel Securities’ recent funding round that placed Crypto.com Group’s valuation at $20 billion.
- During Q2 2026, Robinhood recorded $156 million from event contract operations, representing a 50% quarterly jump and over 10x growth year-over-year.
- Regulatory battles intensify as New Jersey appeals to the Supreme Court regarding state authority over sports contracts on CFTC-supervised platforms.
In a significant expansion move, Robinhood has finalized a comprehensive multi-year partnership involving Crypto.com alongside its recently launched spinoff venture OG.com, securing ownership stakes in both entities. The investment pricing mirrors Citadel Securities’ recent capital injection that established a $20 billion valuation for the Crypto.com Group.
Through this arrangement, Robinhood will direct its retail event contract traffic to OG.com’s derivatives marketplace and clearinghouse, both operating under CFTC regulatory oversight. The implementation launched Tuesday for qualified American traders, debuting with football-related contracts perfectly timed for the opening of the 2026 NFL season.
Shares of Robinhood (HOOD) declined 2.40% when the partnership was announced.
OG.com emerged as an independent entity from Crypto.com carrying a $5 billion market valuation. Neither organization revealed specific details regarding the magnitude or monetary worth of Robinhood’s investment positions.
“Directing event contracts across multiple platforms strengthens market infrastructure, promoting greater diversity and operational resilience,” commented JB Mackenzie, who serves as VP and GM of Futures and Prediction Markets at Robinhood.
The platform will maintain its existing routing arrangements with Kalshi, ForecastEX, and Rothera for event contracts. Users this season gain access to an expanded contract selection encompassing game results, individual player performance, and customized combination bets.
Additionally, Robinhood intends to unveil a specialized election tracking center equipped with dynamic heat maps enabling users to monitor political candidate momentum as events unfold.
Explosive Growth in Event Contracts
The prediction markets segment has experienced remarkable expansion. Robinhood facilitated trading of 13.6 billion event contracts throughout Q2 2026, with 5 billion of those occurring during World Cup competition. This activity generated $156 million in quarterly revenue, climbing 50% sequentially and exceeding the prior year by more than 1,000%.
This milestone represented the initial quarter where Robinhood’s prediction markets income surpassed both cryptocurrency operations ($100 million) and equity transaction fees ($129 million).
Throughout the opening eight months of 2026, Robinhood documented unprecedented revenues and trading volumes in prediction markets. Bernstein’s research team projected in July that Robinhood’s consolidated revenue stream, incorporating prediction markets, could climb to $1.7 billion by 2028.
Robinhood introduced its prediction markets platform in March 2025 through its initial partnership with Kalshi, progressively building out capabilities since that launch.
Mounting Regulatory Obstacles
The expansion faces significant challenges. Prediction market platforms confront increasing legal opposition from state governments seeking to enforce gambling regulations on sports event contracts.
This past April, a Nevada district court prolonged a prohibition blocking Kalshi from providing event contracts within state boundaries without obtaining a gaming license. The judicial decision determined these financial products were essentially equivalent to conventional wagering activities.
New Jersey elevated the dispute last week by filing with the US Supreme Court, requesting clarification on whether individual states possess authority to regulate sports contracts distributed through CFTC-regulated prediction market platforms. New Jersey’s Attorney General Jennifer Davenport accused companies such as Kalshi of claiming to provide legitimate sports betting services while simultaneously refusing to adhere to state gambling regulations.
OG.com’s CEO Kris Marszalek indicated the platform intends to diversify beyond prediction markets, incorporating futures trading and perpetual contract offerings.
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