Will Sports Betting Hurdles Slow Robinhood's Prediction Markets Push?

Robinhood faces regulatory headwinds in its fast-growing prediction markets business as Connecticut and Michigan impose restrictions on sports event contracts. Despite event contracts generating $156 million in Q2 2026—exceeding equities and crypto revenues—regulatory uncertainty from state enforcement and federal court rulings on unlicensed gambling could limit market access and growth. Competitors Interactive Brokers and Coinbase are also scaling prediction market offerings.