Robinhood Markets (HOOD) stock price jumped 5.5 percent on Thursday as investors turned bullish on technology stocks after recent decline. Robinhood Markets witnessed strong buying as the company launched more than 100 contracts targeting the fast-growing prediction markets. Robinhood stock is now trading close to its yearly highs and we could also see the stock making fresh highs in the coming weeks. Robinhood Markets is intensifying its footprint in the fast-evolving prediction markets industry, launching an extensive expansion to outpace mounting competition from DraftKings, FanDuel, and Interactive Brokers. With more than 100 new event contracts added across political, economic, and cultural arenas, Robinhood aims to reinforce its dominance as Wall Street’s retail gateway. Meanwhile, competitors are raising the stakes — DraftKings’ $250 million Railbird acquisition and Interactive Brokers’ surge in economic forecasting products signal an industry racing toward institutional legitimacy. As major sports leagues and billions in trading volume enter the fray, prediction markets are no longer a niche trend—they’re becoming a credible financial frontier.

Robinhood Accelerates Prediction Market Expansion

Robinhood Markets accelerated its push into prediction trading this week, unveiling an ambitious rollout of over 100 new Event Contracts spanning sectors from politics and macroeconomics to entertainment and sports. The initiative began on Friday, October 17, with 20 political contracts entering circulation, followed by 15 additional election-focused offerings throughout the week.

Among these are contracts forecasting Federal Reserve rate decisions, potential Trump administration policy moves, and even outcomes of local mayoral races, all designed to update weekly via Robinhood’s official social channels.

The move underscores Robinhood’s strategic intent to diversify beyond equities and crypto, turning real-world events into a mainstream speculative asset class. It also comes at a time when prediction markets—once the domain of niche traders—are beginning to draw both retail investors and institutional players seeking new alpha-generating instruments.

DraftKings Raises the Stakes With $250 Million Acquisition

DraftKings jolted the competitive landscape this week by announcing the acquisition of Railbird Technologies in a deal worth up to $250 million, marking a significant leap from sports betting into the broader world of event-driven markets.

The deal structure includes $50 million upfront with an additional $200 million tied to performance milestones, a model reflecting DraftKings’ cautious optimism in this nascent space. The new platform, DraftKings Predictions, is slated for launch within months, providing the company’s vast customer base access to prediction markets across sports, finance, and politics.

“We’re excited about the additional opportunity prediction markets represent for our business,” remarked CEO Jason Robins in an interview with CNBC. The statement reflects DraftKings’ strategic recalibration, aligning itself with a fast-growing segment that bridges speculation, data analytics, and behavioral finance.

The move follows FanDuel’s partnership earlier this year with CME Group, a collaboration designed to formalize trading in event contracts with institutional oversight. These parallel developments collectively illustrate how major gaming and financial firms are converging around a shared opportunity: monetizing collective intelligence through event-based trading.

Interactive Brokers Bets on Professional Traders

While its consumer-facing rivals chase the buzz around sports and entertainment, Interactive Brokers is pursuing a different strategy through ForecastEx, a sophisticated platform aimed squarely at professional and quantitative traders.

The brokerage reported hosting more than 8,200 tradable contracts in the third quarter, reflecting a 27% sequential increase, with most activity centered on macroeconomic indicators, climate metrics, and financial forecasts. By emphasizing analytical rigor and institutional-grade data, Interactive Brokers positions itself as the prediction market of choice for portfolio managers seeking tools for hedging or research insights.

This demand-driven approach is quickly expanding ForecastEx’s market share and highlighting how prediction contracts can evolve into legitimate risk instruments used by traders worldwide.

Market Momentum Surges Past $2 Billion in Weekly Volume

The broader prediction market ecosystem is experiencing an unprecedented boom. Combined trading volumes across leading platforms surpassed $2 billion per week for the first time—a symbolic and structural milestone signaling mainstream adoption.

Platforms such as Kalshi and Polymarket, both early leaders in the sector, are now valued at levels once reserved for unicorn fintech startups. Kalshi’s valuation, for instance, has skyrocketed from $2 billion in June to $5 billion by August, with analysts suggesting potential valuations north of $10 billion as capital inflows accelerate.

Adding to the sector’s legitimacy, the National Hockey League (NHL) became the first major U.S. sports league to formalize partnerships with both Kalshi and Polymarket, granting them access to official NHL data and branding rights in a multiyear agreement announced on October 22. The deal symbolizes a watershed moment for prediction markets, signaling their acceptance not merely as speculative tools but as integrated components of the sports and entertainment economy.

Robinhood’s Growing Market Edge

Robinhood’s partnership with Kalshi continues to be a foundational pillar of its event-based strategy. With access to 12 million monthly active users, Robinhood currently accounts for 25% to 35% of Kalshi’s daily trading volume, an extraordinary share given the platform’s youth.

Analysts estimate that, if these volumes hold, the collaboration could generate annual revenue exceeding $200 million for Robinhood, reinforcing its evolution from a zero-commission stockbroker into a full-fledged multi-asset marketplace.

The company’s seamless infrastructure, existing user data ecosystem, and strong retail engagement give it a formidable edge as prediction markets expand into the mainstream. However, growing competition and regulatory oversight will dictate how quickly the asset class can mature into an established segment of the financial system.