Robinhood has expanded its sports-focused event contracts, allowing customers to place wagers on individual player performances in professional football. The new offerings were introduced on Tuesday as part of the online brokerage’s push to broaden its prediction market products.
Previously, users could only trade contracts based on the final outcome of a game. The latest contracts now allow more detailed predictions, including whether a player scores a touchdown or how many passing or rushing yards they record.
Competition rises as regulators increase scrutiny
The move could help the Menlo Park, California-based firm stand out in a crowded market that continues to attract new competitors. However, the expansion comes as some U.S. state regulators call for stricter oversight of event-based trading products.
Adam Hickerson, Robinhood’s senior director of futures, said the company’s early entry into the market has allowed it to refine its offerings as competition grows.
Critics argue that sports event contracts closely resemble traditional sports betting and may encourage excessive risk-taking among retail investors.
Industry participants counter that these products are regulated by the Commodity Futures Trading Commission, which oversees derivatives markets in the United States.
Hickerson declined to comment on ongoing legal challenges facing the industry but emphasized that Robinhood remains fully compliant with all CFTC rules.
Preset combos and rapid market growth
Robinhood also rolled out “preset combo” contracts, which allow users to combine multiple predictions from a single game into one trade. These contracts only pay out if all predictions are correct.
Event contracts gained wider attention ahead of last year’s U.S. presidential election. When successful, these contracts typically pay out $1 per correct prediction.
According to a report by crypto investment firm Keyrock and blockchain data provider Dune, monthly trading volumes in prediction markets have surged past $13 billion, up from less than $100 million in early 2024.
