Robinhood Takes Stakes in Crypto.com and OG.com in Prediction Markets Deal
Robinhood has acquired equity stakes in Crypto.com and the newly spun-off prediction market platform OG.com under a multi-year agreement to utilize OG.com's regulated infrastructure for event contracts. The partnership involves routing retail event contracts through OG.com’s Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange and clearinghouse. The rollout for eligible US customers began on June 20, 2024.
Deal specifics and equity stakes
Robinhood acquired stakes in both Crypto.com and OG.com at valuations established in a prior investment by Citadel Securities. The companies have not disclosed the exact size or value of Robinhood’s holdings. This deal follows OG.com’s spin-off from Crypto.com, valued at $5 billion, and comes less than two months after reports that Robinhood was negotiating with Crypto.com to enhance its prediction markets offerings.
OG.com will operate independently from the crypto exchange. CEO Kris Marszalek stated that the platform intends to expand beyond prediction markets into futures and perpetual contracts.
Expansion and growth of Robinhood’s prediction markets
Robinhood launched its prediction markets hub in March 2025 in partnership with CFTC-regulated exchange Kalshi and subsequently expanded its prediction market infrastructure. In Q2, event contracts generated $156 million in revenue for Robinhood, a more than tenfold increase from the previous year, surpassing $129 million in equities transaction revenue and $100 million from crypto.
Bernstein analysts projected in July that Robinhood's revenue inclusive of prediction markets could reach $1.7 billion by 2028.
Legal challenges and regulatory landscape
Prediction market operators have faced mounting legal challenges as US states seek to apply gambling laws to sports event contracts. In April, a Nevada judge extended a ban on Kalshi offering event contracts without a gaming license, deeming the contracts effectively indistinguishable from traditional bets.
The dispute escalated when New Jersey petitioned the US Supreme Court to determine whether states can regulate sports contracts offered on CFTC-regulated prediction markets. New Jersey Attorney General Jennifer Davenport highlighted that firms like Kalshi claim nationwide legal sports betting status while refusing to comply with state gambling regulations, urging the Supreme Court to resolve the jurisdictional conflict.
Why it matters
This news highlights a significant move by Robinhood in advancing its prediction markets by strengthening partnerships with major crypto industry players, Crypto.com and the OG.com platform. Utilizing OG.com's regulated infrastructure ensures the legitimacy and reliability of event contracts for retail customers in the US, underscoring the growing market for prediction products domestically. However, the sector faces notable legal challenges as US states attempt to apply gambling laws to these novel financial products, complicating regulatory clarity and legalization prospects. The outcome of these legal disputes and the evolution of such partnerships may substantially influence the future landscape of innovative financial instruments based on derivatives and cryptocurrencies.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
Open original source ↗