(Bloomberg) — Robinhood Markets Inc. shares rose over 12% after Chief Executive Officer Vladimir Tenev said the online-stock brokerage has made strong inroads into prediction markets, where people wager on elections, sporting matches and other widely followed events.
The executive said in a post on X on Monday that Robinhood customers have now transacted more than 4 billion of such event contracts, 2 billion of which were in the third quarter alone.
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Betting on prediction markets came to prominence during the 2024 US presidential election, when platforms such as Kalshi and Polymarket facilitated millions of dollars in wagers on the outcome. Robinhood has seen it as a source of growth and the proliferation is blurring the lines between financial markets and the gambling industry.
The brokerage provides the ability to trade prediction-market contracts through a partnership with Kalshi, which is regulated by the US Commodity Futures Trading Commission. Robinhood expanded into pro- and college-football contracts in August.
The advance on Monday pushed Robinhood’s shares to a record high and capped a more than 260% jump so far this year. It was added to the S&P 500 Index this month.
Beyond prediction markets, Robinhood’s primary business is trading in stocks, options and cryptocurrencies.
—With assistance from Paige Smith.
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