Robinhood weighs global rollout of prediction markets
Robinhood explores overseas expansion as regulators debate whether contracts are financial products or gambling bets
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Robinhood Markets Inc. is in discussions with overseas regulators about expanding its fast-growing prediction markets business outside the United States.
In coverage initially published by Bloomberg, JB Mackenzie, Robinhood’s vice president of futures and international, said the firm has held talks with the UK’s Financial Conduct Authority (FCA) on how such contracts would be treated under local law. In the US, prediction markets are regulated by the Commodity Futures Trading Commission (CFTC) as swap products, while in Europe they are often classified as gambling.
“We’re definitely looking to offer it globally, and my goal or focus is to make sure it’s a regulatory-compliant product everywhere we go,” said Mackenzie.
The brokerage entered the UK and European Union in late 2023, primarily offering equities and cryptocurrency trading. Its push into prediction markets builds on partnerships with CFTC-approved venues like Kalshi and ForecastEx, which let users speculate on outcomes ranging from elections to sports.
CEO Vlad Tenev said on Tuesday that Robinhood had facilitated more than 4 billion event contracts, with over 2 billion traded in the third quarter alone. Shares rose more than 12% following the disclosure.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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