Robinhood CEO Sees Crypto Prediction Markets Overtaking Sports

Robinhood Markets CEO Vlad Tenev expects crypto prediction markets to take a growing share of the company’s event-contract business, potentially pushing sports-related contracts into the minority within the next few years.

Speaking with CNBC’s Jim Cramer on “Mad Money,” Tenev said Robinhood is already seeing strong demand for crypto-linked event contracts. He argued that prediction markets extend well beyond sports betting by allowing users to trade yes-or-no contracts tied to the outcomes of future events.

“We’re already seeing other categories like crypto taking a disproportionate share. And I think within a few years, sports will actually be in the minority,” Tenev said.

Prediction markets have emerged as a rapidly expanding segment of U.S. trading, attracting companies including CME, Kalshi, Coinbase and decentralized platforms. Robinhood has also increased its exposure to the sector as demand for event contracts grows.

Sports-related prediction contracts, however, face mounting legal challenges. New York sued Kalshi in July, seeking more than $36 billion in damages and a nationwide ban on certain event contracts. Baltimore has also taken legal action against Kalshi and Polymarket, alleging their sports products operate as unlicensed sportsbooks.

New York City officials have separately investigated how platforms including Kalshi, Polymarket, Coinbase and Gemini Titan market prediction contracts to residents. Crypto-focused contracts have largely remained outside these sports-betting disputes, potentially giving them greater room to expand.

Robinhood is preparing for broader growth in the sector. The company recently formed a joint venture with market maker Susquehanna to acquire crypto exchange MIAXdx, formerly LedgerX, as part of plans to develop dedicated prediction-market infrastructure.

Robinhood has described prediction markets as its fastest-growing revenue line, with about nine billion event contracts traded on the platform over the past year.

Tenev has positioned the expansion alongside Robinhood’s broader push into financial ownership products, including retirement-account matching and tokenized stocks. While his forecast that crypto contracts will surpass sports remains uncertain, Robinhood’s infrastructure investments indicate the company is preparing for a more diversified prediction-market business.