Retail brokerage Robinhood is exploring opportunities to offer its prediction markets outside of the U.S., according to a new report from Bloomberg.
While in the U.S. prediction markets are treated like a financial instrument and regulated federally by the Commodity Futures Trading Commission (CFTC), some countries regulate them as a gambling product. According to the report, Robinhood has been speaking with regulators like the U.K.’s Financial Conduct Authority (FCA) to see how it could begin offering prediction markets overseas.
Robinhood launched in the U.K. and European Union in 2023, primarily focusing on crypto trading and equities, according to Bloomberg.
“Right here in the United States,” Robinhood vice president JB Mackenzie told Bloomberg, “(prediction markets are) a federally regulated CFTC product. What we’d have to figure out is what does that mean? Whether it’s in the UK or if it was in the EU or so forth, why are they designated in such a way? And then what’s the regulatory rules for it?”
Prediction markets providing Robinhood a large revenue boost
The expansion indicates that Robinhood is looking to build upon the massive surge in trading volume its prediction markets have attracted in the U.S. since introducing them earlier this year. Late last week, CNBC reported that, according to an analyst from investment firm Piper Sandler, prediction markets could boost Robinhood’s annual revenue by up to $200 million.
Robinhood is a registered Futures Commission Merchant and it partners with CFTC-approved event trading platform Kalshi to facilitate the prediction markets offered on its platform. Robinhood began offering Kalshi markets in March, after initially pulling Super Bowl markets in February at the request of the CFTC. Robinhood’s prediction market hub has featured financial prediction markets, as well as several sports markets, which have become the leading trade volume driver at Kalshi.
The partnership has been mutually beneficial, to say the least. The Piper Sandler analyst said that markets on Robinhood account for up to 35% of Kalshi’s trading volume on any given day. Driven largely by NFL and college football event contracts (which Robinhood features on its platform), Kalshi has experienced record-breaking trading volume in September.
Robinhood CEO says “we’re just getting started” with prediction markets
On Monday, Robinhood co-founder and CEO Vlad Tenev posted on X that the platform’s prediction markets have seen 4 billion event contracts traded, with more than 2 billion traded in Q3. “And we’re just getting started,” Tenev added.
Robinhood Prediction Markets just crossed 4 billion event contracts traded all-time, with over 2 billion in Q3 alone. And we’re just getting started. pic.twitter.com/13LxjqWaNt
— Vlad Tenev (@vladtenev) September 29, 2025
As gaming industry journalist Dustin Gouker pointed out on X, Kalshi’s Q3 trading volume overall has topped $4 billion, meaning, if the numbers Tenev shared are accurate, Robinhood has accounted for nearly half of that.
Robinhood’s stock rose over 12% after Tenev’s prediction market update and hit an all-time high on Tuesday.
Brokerage partnership focus paying off for Kalshi
Kalshi has previously said that it was making broker partnerships a priority. After Kalshi’s recent $185 million funding round and $2 billion valuation, Kalshi co-founder and CEO Tarek Mansour told the Wall Street Journal that some of the funding would be used to pursue more broker integration opportunities.
In July, Mansour said nearly 20 more broker partnerships were “in the pipeline.”
Brokers.
Our broker pipeline has exploded: Kalshi has close to 20 brokers in the pipeline today.
Aside from growing meaningfully in terms of both customers and volume, our broker partners are deepening their engagement: they are listing more markets at an increasing pace. A…
— Tarek Mansour (@mansourtarek_) July 3, 2025
Partnerships with Robinhood and Webull (which has largely stuck to financial/economic markets) have put Kalshi’s event contracts directly in front of many younger users already in the trading realm. Given the substantial volume boost provided by Robinhood, the strategy is clearly paying off.
Robinhood is also obviously pleased with the results of its Kalshi partnership as it looks to expand beyond U.S. borders. If Robinhood were to expand its prediction market offerings to the U.K. and E.U., it’s unclear whether the markets would be provided by Kalshi (which only operates in the U.S.) or by some other means.
