Prediction markets bring Robinhood $173 million as crypto revenue slumps

Trading platforms are finding new income streams as digital asset transactions shift, with prediction markets playing a notable financial role. Robinhood recently disclosed that event contracts generated $173 million during the third quarter, surpassing the $120 million brought in by cryptocurrencies. This decline in crypto revenue, which fell 55% from the previous year, highlights how event contracts and searches for terms like robinhood prediction markets are shaping platform finances.

Robinhood earned $104 million from event contracts in the first quarter, $156 million in the second, and $173 million in the third. These quarters total $433 million for the first nine months of the year, with quarterly revenue rising about 66% from the first period to the third. In the third quarter, event-contract revenue accounted for approximately 12.1% of Robinhood's total net revenue of $1,424 million.

Other platforms are also experiencing growth in this sector. Coinbase reported that its prediction markets business surpassed $200 million in annualized net revenue, adding an income stream less correlated with crypto volatility. Chief Financial Officer Alesia Haas noted that this helps make Coinbase more resilient across market cycles. Meanwhile, Gemini reported $524,000 in prediction-market revenue for the quarter ending June 30, making up about 1.2% of its total revenue.

Event contracts generated $173 million for Robinhood as crypto transaction revenue declined by 55%.

Other venues expanded their prediction offerings earlier in the year as well. Crypto.com launched its platform in February, Bybit introduced its prediction product in June, and Phemex rolled out integration powered by Polymarket. However, regulatory warnings remain present, as Robinhood cautioned that enforcement actions, litigation, or legal changes could prevent it from continuing to offer event contracts.

Why it matters

These financial disclosures show that prediction markets are becoming a tangible source of platform revenue, though their contribution varies significantly between companies. The next test for these businesses is whether they can deliver recurring revenue at a scale that alters each platform's overall dependence on crypto trading.