Robinhood in Talks With UK and EU Regulators on Prediction Markets Expansion: Report

Robinhood Markets is examining a possible expansion of its prediction markets product outside the United States. The brokerage has opened discussions with regulators in the UK and Europe to tap rising demand for event-based trading, Bloomberg reported.

The company has reportedly been speaking with the UK’s Financial Conduct Authority (FCA) about how prediction markets could be structured locally. In the US, such contracts are treated as futures products and fall under the oversight of the Commodity Futures Trading Commission. In other jurisdictions, regulators often classify them as gambling.

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Rising Demand

Robinhood reported that global interest in prediction markets is growing, particularly in the UK and Europe. The firm entered both markets in late 2023 with its equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term and cryptocurrency platform.

Since adding prediction markets earlier this year, Robinhood has brokered more than four billion event contracts, according to Chief Executive Officer Vlad Tenev. Tenev shared the milestone in a post on X this week. Shares of Robinhood rose more than 12% after the announcement and traded up about 3% to $140 on Tuesday.

Robinhood announced it has crossed 4 billion event contracts traded all-time, with Tenev revealing that more than $2 billion in contracts were registered in the third quarter alone.

Robinhood Prediction Markets just crossed 4 billion event contracts traded all-time, with over 2 billion in Q3 alone. And we’re just getting started. pic.twitter.com/13LxjqWaNt

— Vlad Tenev (@vladtenev) September 29, 2025

The fintech giant partners with Kalshi and ForecastEx to provide prediction markets in the US, with both platforms being regulated by the CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term. Expansion abroad would now require adapting to local oversight rules. The firm is also screening which markets to list.

Competitive Landscape

Prediction markets surged in popularity during the 2024 US presidential election, when platforms like Kalshi and Polymarket saw billions of dollars in trades. The sector has since expanded into sports, economics, and asset price volatility.

Related: Robinhood's Prediction Markets Cross 4 Billion Contracts All-Time, CEO Says

However, competition is increasing. Polymarket has reportedly acquired an exchange to serve US customers. FanDuel and Underdog have also entered the space through partnerships, while CME Group said in August it would consider sports-related prediction markets if its partner FanDuel offered them.

Robinhood’s push overseas may help it gain share as the US market becomes more crowded. The final hurdle will depend on how regulators abroad classify prediction markets.

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