Robinhood explores launching prediction markets abroad - report

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Robinhood Markets (NASDAQ:HOOD [https://seekingalpha.com/symbol/HOOD]) is looking to expand its prediction markets beyond the U.S., a move that would increase its presence in a hot yet controversial industry, according to a media report on Tuesday.

Robinhood (NASDAQ:HOOD [https://seekingalpha.com/symbol/HOOD]) stock rose 2.0% in morning trading.

The company has been talking to overseas regulators, such as the UK's Financial Conduct Authority, to explore how it might expand to local prediction markets, amid growing demand for such offerings, Bloomberg News reported, citing an interview with a company executive. The results would determine how products would be structured and regulated. Prediction markets in the U.S. are seen as futures products, while some regions consider them closer to gambling products.

"It’s a swap here in the United States. So the question would be where is swap oversight, let’s say in the UK? That’s a question that we’ve been asking the FCA, how do we work it?,” JB Mackenzie, vice president and general manager of futures and international at Robinhood (NASDAQ:HOOD [https://seekingalpha.com/symbol/HOOD]), said in an interview with Bloomberg.

The eye toward expansion highlights the controversy of a category that can blur the lines between financial markets and gambling.

"We’re definitely looking to offer it globally, and my goal or focus is to make sure it’s a regulatory-compliant product everywhere we go," he said. [https://www.bloomberg.com/news/articles/2025-09-30/robinhood-explores-launching-prediction-markets-outside-the-us?srnd=homepage-americas]

In March, a Morgan Stanley analyst estimated that prediction markets could represent an $250M per year revenue opportunity [https://seekingalpha.com/news/4421782-robinhoods-prediction-market-debut-may-be-a-260m-revenue-opportunity-analyst-says] for the company. In the same month, Robinhood launched a prediction market hub, [https://seekingalpha.com/news/4421248-robinhood-expands-trading-offerings-with-launch-of-prediction-market-hub] allowing users to make bets on events like Federal Reserve policy and NCAA college basketball tournaments.

The company originally waded into the prediction markets [https://seekingalpha.com/news/4212717-robinhood-to-let-customers-trade-based-on-us-presidential-election-predictions]space late last year, allowing customers to trade event contracts on the results of the 2024 U.S. presidential election.

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