Can You Trade Taylor Swift's Next Album? Robinhood Says Yes
Robinhood Markets (NASDAQ: HOOD) has expanded its prediction market offerings by introducing entertainment-focused contracts, enabling users to bet on Grammy nominations, Oscar winners, and other cultural events. These new contracts, provided through Kalshi, a CFTC-regulated exchange, cover a wide range of topics, including music releases, awards, and speculative scenarios like potential pandemics or alien announcements. Robinhood has achieved nearly $1 billion in prediction market trading volume, contributing approximately $10 million in revenue in Q2 2025. The brokerage also plans significant international expansion and further growth in event contracts. The entry of Robinhood and competitors like Crypto.com and DraftKings into prediction markets has pressured traditional betting operators, while Robinhood continues to see significant engagement from users.
Robinhood Expands Into Entertainment Prediction Markets
Robinhood Markets (NASDAQ: HOOD) has expanded its offering by adding dozens of entertainment-focused prediction contracts to its platform. These contracts allow users to place bets on Grammy nominations, Oscar winners, and celebrity rankings, enhancing its existing sports and political prediction categories. This move underscores the company's growing focus on diversifying its prediction offerings into cultural and entertainment sectors.
Types of New Entertainment Contracts
The new contracts cover a range of themes, including which artists may receive Grammy nominations, the outcomes of Golden Globe awards, and album release predictions by specific musicians. Additionally, users can trade predictions on Google search rankings, Spotify streaming leaders, and awards such as TIME Person of the Year. Other notable topics include speculative questions such as whether the United States will acknowledge the existence of aliens this year. These contracts were detailed in an email shared with FinanceMagnates.com by Robinhood.
Structure and Regulatory Compliance
Robinhood offers these contracts through a partnership with Kalshi, a Commodity Futures Trading Commission (CFTC) regulated exchange. Contracts trade between $0.01 and $0.99, with payouts of $1.00 if predictions are correct. Robinhood charges a $0.01 fee per dollar traded, in addition to Kalshi's fees, further cementing its operational framework under regulatory oversight.
Growth in Trading Volume and Revenue Contribution
Robinhood reported nearly $1 billion in trading volume within its prediction markets during the second quarter. Sports contracts accounted for a significant share of this activity. Since the launch of its Prediction Markets Hub in March, Robinhood has been regularly adding contracts and now contributes roughly 50% of Kalshi's trading volume. The company generated approximately $10 million in revenue from event contracts during this period, which remains a small fraction of its overall earnings.
Impact on Competitors
The growth of prediction markets has placed pressure on traditional sports betting platforms. DraftKings shares dropped 18% over the last month due to competition from Robinhood and Kalshi's offerings, as well as favorable outcomes for NFL bettors. Meanwhile, Crypto.com has announced its entry into entertainment contracts via a partnership with Hollywood.com, while DraftKings acquired Railbird Technologies to secure a CFTC license for federally regulated prediction markets.
International Expansion Plans
Robinhood is in discussions with international regulators, such as the UK's Financial Conduct Authority (FCA), to explore launching prediction markets outside of the United States. The company has reported increased interest from users in Europe and the UK, though any international rollout would require strict compliance with local regulations.
Expected Financial Performance
Robinhood is set to announce its third-quarter earnings later today. Analysts predict a 137% year-over-year increase in transaction-based revenues, reaching $756 million. Additionally, options trading revenue is expected to rise by 49%, while cryptocurrency transaction revenues may surge 415% compared to the prior year—a significant growth trajectory illustrating Robinhood's broadening financial footprint.