Robinhood considers global expansion of prediction markets

Robinhood Markets Inc. is exploring the possibility of expanding its prediction markets business internationally, engaging with regulators like the UK’s Financial Conduct Authority (FCA). JB Mackenzie, the company's VP of futures and international, indicated that discussions center on how these contracts will be classified under local laws, distinguishing them from being viewed merely as gambling. In the U.S., the Commodity Futures Trading Commission (CFTC) regulates these markets, while they are often categorized as gambling in Europe. Robinhood aims to ensure regulatory compliance across all markets prior to launch. Having entered the UK and EU in late 2023 with a focus on equities and cryptocurrency trading, the planned expansion into prediction markets highlights partnerships with CFTC-approved platforms such as Kalshi and ForecastEx. CEO Vlad Tenev noted that the firm has facilitated over 4 billion event contracts, with a significant number being traded recently, leading to a more than 12% rise in its stock following these announcements.

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