Robinhood CEO Sees Crypto Event-Contracts Dominating Prediction Markets Soon

Robinhood (HOOD) Chairman and CEO Vlad Tenev told CNBC's Jim Cramer that crypto-related event-contracts are already claiming a larger-than-expected portion of the platform's prediction market activity, and he anticipates that sports wagers will become a smaller category within a few years.

Over the past year, prediction markets have emerged as one of the fastest-expanding segments of U.S. trading, with CME, Kalshi, Coinbase and decentralized platforms all vying for a piece of the event-contract boom. Alongside them, crypto-linked contracts have expanded, largely staying clear of the sports-betting legal disputes now making their way through the courts. That has given Robinhood's newest offering room for rapid growth.

Why Sports Contracts Are Losing Ground

During an appearance on "Mad Money," Tenev challenged the notion that event contracts—binary trades on whether a future event will occur—are merely a new name for sports gambling.

"We're already seeing other categories like crypto taking a disproportionate share. And I think within a few years, sports will actually be in the minority."

Vlad Tenev, CNBC

Sports-related event contracts have become prediction markets' most hotly disputed area. New York sued Kalshi in July, demanding over $36 billion in damages and a nationwide prohibition on its event contracts. Separately, Baltimore sued Kalshi and Polymarket, accusing them of running unlicensed sportsbooks.

The New York City Council has also launched its own inquiry into how Kalshi, Polymarket, Coinbase and Gemini Titan market prediction contracts to residents.

Crypto-linked event contracts have so far avoided that particular legal battle, giving the category more room to expand while sports contracts navigate the courts.

Robinhood Is Building Beyond Contracts

Tenev's remarks align with moves Robinhood has already been making. The company recently established a joint venture with market maker Susquehanna to acquire crypto exchange MIAXdx, formerly LedgerX, with plans to create its own dedicated prediction market infrastructure, according to Front Office Sports.

Robinhood has described prediction markets as its fastest-growing revenue stream, with roughly nine billion event contracts traded on the platform in the past year.

Tenev positions the strategy as part of a wider "ownership" initiative that he has also used to justify Robinhood's retirement-account matching and its expansion into tokenized stocks.

Whether crypto contracts surpass sports on his timeframe remains unconfirmed, but the infrastructure buildup indicates Robinhood is preparing for that shift rather than wagering against it.