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On March 17, JB Mackenzie, vice president and general manager of futures and International at Robinhood, commented on how the company sees the power of prediction markets extending to news, economics, politics, sports, and culture.
He noted Robinhood's commitment to providing customers with a unique way to participate in online prediction markets.
"We're excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations", said Mackenzie.
The company will offer a regulated environment for its users, resulting in improved liquidity, price discovery, and transparency, ultimately leading to an improved customer experience. The company reaffirmed a mission to democratize finance and give retail investors access to institutional-level financial tools.
The prediction markets hub will be initially accessible across the U.S. via KalshiEX LLC, a CFTC-regulated exchange. Robinhood is in continued talks with the CFTC to maintain regulatory compliance and said it is committed to promoting innovation in futures, derivatives, and crypto markets.
According to MarketWatch Interactive Brokers founder and chairman Thomas Peterffy, the market for event contracts could exceed the equities market in the next 15 years due to its more extensive applicability to society and capacity to reflect consensus estimates on future events.
Reflecting a compound annual growth rate (CAGR) of 46.8%, between 2025 and 2035, a report by Meta Tech Insights projects the distributed prediction industry to be $95.5 billion by 2035.
Polymarket, a prediction market, has witnessed massive expansion, with wager volumes surpassing $2.5 billion in the 2024 U.S. presidential election, compared to $10 million in 2020.