Robinhood takes equity stakes in Crypto.com and OG.com in prediction markets deal

Robinhood takes equity stakes — Robinhood has taken equity stakes in Crypto.com and its newly spun-off prediction market platform OG.com as part of a multi-year deal to expand its event contracts business.

Under the agreement announced Tuesday, Robinhood will route retail event contracts through OG.com’s Commodity Futures Trading Commission-regulated derivatives exchange and clearinghouse. The rollout begins immediately for eligible US customers.

The companies did not disclose the size or value of Robinhood’s holdings, but stated the stakes are priced at valuations established by an earlier Citadel Securities investment. The deal follows OG.com’s spin-off from Crypto.com at a $5 billion valuation.

Robinhood’s prediction markets business has grown rapidly, generating $156 million in revenue in the second quarter, surpassing its equities and crypto transaction revenue. The move comes as prediction market operators face increasing legal challenges from US states applying gambling laws to sports event contracts.