Robinhood CEO calls prediction markets company's fastest-growing business ever
Robinhood CEO Vlad Tenev on September 20 called prediction markets the company's fastest-growing business ever. He referenced 'DCM,' a designated contract market, in describing the business. Tenev's remarks signal deepening strategic focus on event-contract products beyond sports.
Tenev's comments mean Robinhood must now deliver growth across partner-dependent paths — Kalshi, Rothera joint venture, Crypto.com, and OG.com — with no direct CFTC DCM license of its own. The $156 million Q2 revenue that surpassed crypto trading has set a floor Wall Street will demand again.
Partner concentration risk remains: any regulatory action or dispute forces volume migration. Rothera, a top-tier DCM via the Susquehanna JV, provides partial owned coverage. Competitors with direct CFTC designations like Kalshi can pitch stability. Crypto contracts may outpace sports, but that depends on partner rails staying cooperative.