Robinhood's event-contract revenue surges tenfold as CEO pivots to crypto

Vlad Tenev told Jim Cramer on Mad Money that crypto contracts are already taking a disproportionate share of Robinhood's prediction markets business, and that within a few years sports contracts "will actually be in the minority."

Robinhood's event-contract revenue reached $156 million in the second quarter, making it the company's fastest-growing business line. Contracts traded 4.7 billion times in August, roughly fifteen times the volume of a year earlier. Over the same period, Robinhood's crypto trading revenue fell.

The business now runs on three platforms: Kalshi, on which Robinhood launched; Rothera, a CFTC-licensed joint venture with Susquehanna; and OG.com, the prediction-market spinoff of Crypto.com, in which Robinhood took a minority stake this month.

The shift toward crypto carries a legal rationale. The Ninth Circuit ruled last month that Nevada can regulate Kalshi's sports contracts, splitting with the Third Circuit. New Jersey has asked the Supreme Court to resolve the conflict. Crypto contracts carry no equivalent state challenge. Moving volume toward crypto moves Robinhood's fastest-growing revenue line onto ground no state attorney general is currently contesting.