Robinhood’s bet on prediction markets is paying off. Here’s how they work.

Robinhood says prediction markets have exploded in growth over the past quarter, one of the company’s latest business lines to generate $100 million or more in annualized revenue. “Prediction markets are really on fire,” Robinhood CEO Vlad Tenenv said on the company’s earnings call Nov. 5. “It’s hard to believe we launched this just about a year ago with the presidential election market. We’ve doubled volume every quarter since then to 2.3 billion contracts in Q3.” In October alone, the total number of e ...