Robinhood's prediction market business has achieved over $415 million in annual recurring revenue for 2025, marking a significant milestone since its launch in March of the same year. The platform, which integrates Kalshi's prediction markets, has seen substantial user engagement, with over 1 million customers trading event contracts. In the first quarter of 2026 alone, Robinhood recorded 8.8 billion event contracts. The company's strategy involves leveraging its extensive user base of 27.4 million paying customers to distribute prediction market contracts, enhancing its cross-selling capabilities across various asset classes. This approach positions Robinhood as a formidable player in the prediction market space, with plans to further integrate these markets into its broader trading platform. The integration aims to provide users with real-time probability markets alongside traditional financial instruments, potentially increasing Robinhood's prediction market revenue by 50% to $620 million. Robinhood's joint venture, Rothera LLC, established in November 2025, allows the company to list any event contract independently, enhancing its control over the prediction market offerings. This move is expected to bolster Robinhood's competitive edge against platforms like Kalshi and Polymarket, which face regulatory challenges and rely heavily on sports-related event contracts for revenue.