Robinhood to route football contracts through OG.com exchange

Investing.com -- Robinhood Markets said on Tuesday it will route some football event contracts through OG.com's federally regulated exchange. The company will also take equity stakes in the platform and its former parent Crypto.com as part of its expansion into prediction markets.

The stakes will be priced in line with Citadel Securities' recent investment in Crypto.com at a $20 billion valuation, which includes $5 billion for the recently spun-off OG.com, Robinhood said.

The retail trading platform will begin routing selected football contracts to OG.com on Tuesday, adding another trading venue alongside its existing partners ahead of the U.S. professional football season.

Event contracts generated a record $156 million in second-quarter revenue, becoming a growth driver for Robinhood.

OG.com operates as an independent trading platform with a derivatives exchange and clearinghouse regulated by the U.S. Commodity Futures Trading Commission.

Robinhood is also expanding its election-related contracts ahead of the November midterms with a dedicated hub for state and federal races. Some of these contracts could later be routed to Crypto.com and OG.com.

Prediction markets offer contracts on sports, political and economic events. The products gained mainstream popularity during the 2024 U.S. presidential election and attracted strong demand during sports events such as the FIFA World Cup.

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