Sports Betting Built the Prediction Market Boom. Is It Headed for a Ban?
By Jeff Albus
AI summary of the source article
Robinhood generated $173 million from event contracts last quarter, but sports prediction markets face growing state-level bans. While the CFTC ordered exchanges not to block customers by state, two federal appeals courts have sided with state regulators.
Why it matters
That leaves the companies caught between a regulator that wants them in every state and courts that have ordered them out of some.
Key facts
- Robinhood earned $173 million from event contracts in Q3 2026, up from $27 million a year earlier and surpassing its $120 million in crypto revenue.
- Two of three federal appeals courts have ruled against event contract operators, leading platforms like Robinhood and Coinbase to halt sports contracts in states including Ohio and Michigan.
- On Nov. 5, the CFTC told exchanges they may not block customers by state, creating conflicting mandates between the federal regulator and state court rulings.
Source excerpt · Unchained
Robinhood earned $173 million from event contracts last quarter, against $120 million from crypto, and most of that growth came from sports wagers, the company said in its quarterly filing. Event contracts let customers bet on the outcome of a game, an election or another event. Exchanges such as Kalshi ... The post Sports Betting Built the Prediction Market Boom. Is It Headed for a Ban? appeared…