Robinhood is considering acquisitions to expand its prediction-markets business, senior executive JB Mackenzie told Reuters. He said the company would weigh potential purchases against in-house development and could also consider joint ventures or partnerships.
Acquisitions, joint ventures or partnerships could shape how Robinhood expands its prediction-markets business.
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The American Gaming Association forecasts that Americans will legally wager $29.5bn through regulated commercial sportsbooks during the 2026 NFL season, compared with $29.4bn the previous season. AGA president and chief executive Bill Miller said prediction markets have stalled growth in legal betting, while the association estimated they had diverted more than $1.3bn in potential state gaming tax revenue since 2025.
Reportedly, Novig and Underdog are expanding their multi-leg prediction market offerings in the USA. The outlet identified these combinations as an increasing source of activity in sports prediction markets.
The Securities and Exchange Commission has not approved any ETFs related to prediction markets, according to a Cornerstone Research article. The report says the SEC stalled action on election-contract ETF proposals while examining their structure; filings have also proposed funds linked to other outcomes, including NHL teams. The SEC’s public comment period on novel ETFs was due to end at the close of August, with no guarantee of further action.
Reportedly, Prediction market operators are broadening their sports products as further litigation developments are expected. The outlet identified Polymarket’s combinations as facing their first football test and flagged possible additional filings in New York.
DraftKings chief financial officer Alan Ellingson told an investor conference that the company sees prediction markets as a significant opportunity alongside its sportsbook business. The company has warned that related investment could reduce 2026 EBITDA by $200m to $300m, and says its combined app strategy could help it attract customers in California, where sports betting remains illegal.