Trading in Robinhood Markets' event contracts has increased more than tenfold. The product generated $156 million in revenue in the second quarter of 2026.
The contracts are essentially wagers on the outcomes of specific events. They have become one of Robinhood's fastest-growing offerings and have contributed significantly to transaction-based revenue.
The expansion faces legal and regulatory challenges. The Ohio Casino Control Commission issued a cease-and-desist letter, asserting that the sports-related contracts constitute illegal sports betting.
Users have also sued Robinhood, alleging that the platform operates an unlicensed and unlawful sports gambling business. The company has disclosed that changes in state or federal law could force it to halt the offering.