Robinhood nears 2 million prediction market users as Rothera reaches top-3 DCM
Robinhood said its prediction market platform has grown to nearly 2 million users during second-quarter results disclosed in late July. Rothera, the regulated exchange and clearinghouse launched with Susquehanna that began routing some Robinhood event contracts, has rapidly become a top-3 designated contract market in the US. The figures underscore Robinhood's growing footprint in regulated prediction markets through a partner infrastructure model rather than building its own exchange.
Robinhood's supplier choice now shapes pricing power across the entire prediction-market exchange tier. Routing volume through both Kalshi and the Rothera joint venture lets Robinhood play the two against each other on revenue share. Analyst upgrades from Truist and Compass Point have made the routing decision unavoidable on every earnings call. Rothera's climb to a top-3 designation gives Robinhood a credible in-house path if Kalshi terms stiffen.
Kalshi's first-mover grip on brokerage distribution frays each quarter that Rothera clears comparable flow. ForecastEx and any later entrant face a shrinking window to lock in alternate distribution before Robinhood's 27.4 million accounts become captive Rothera volume. The platform that secures long-term Robinhood flow will template brokerage distribution for the rest of the sector.