The brokerage reported $156 million in prediction market fees, surpassing stock and crypto trading revenue for the first time.
Robinhood’s prediction markets unit generated $156 million in fees last quarter, a 50% increase from Q1. The surge, driven by World Cup wagers, made it the firm’s second-largest trading business after options, outpacing stock ($129 million) and crypto ($100 million) trading revenue.
Customer wagers on event contracts rose 55% quarter-over-quarter. The company routed some contracts through Rothera, its in-house exchange, improving economics. CEO Vlad Tenev called the World Cup a “proof of concept” and cited upcoming events like the football season and midterm elections as growth drivers.
Robinhood lowered commissions on prediction bets to gain market share, offsetting the move with earnings from other trading activity and interest revenue. The strategy aims to attract users to its broader financial platform.