Robinhood says prediction markets now bring in $100 million of annual revenue—but no plans to build its own

Core Insights - Prediction markets are rapidly growing, with Robinhood reporting $100 million in annualized revenue from this segment, and October's revenue surpassing the entire previous quarter [1][2] Company Strategy - Robinhood CEO Vlad Tenev emphasized the importance of prediction markets for future growth but indicated that the company does not plan to create its own prediction market [2][4] - The company currently partners with Kalshi to provide the underlying exchange for its prediction market offerings, rather than competing directly with startups like Kalshi and Polymarket [3][4] - Robinhood's strategy focuses on leveraging its extensive distribution network, which includes over 26 million U.S. customers, to attract partnerships with prediction market firms [7] Market Dynamics - The growth in prediction markets is largely driven by sports betting, particularly in college football and the NFL, which has recently become more legally accessible [8] - In October, Robinhood reported 2.5 billion prediction market contracts, indicating significant user engagement in this area [8]