Robinhood Targets Sports Betting! $11 Billion in Contracts Revealed Ahead of NFL Playoffs

Robinhood Markets announced a significant expansion of its sports prediction market business on the eve of the 2026 NFL playoff season, officially entering the sports betting field by launching the “Pre-set Combination” feature and player contract trading, allowing users to bet on precise data such as touchdowns and receiving yards for football players. Robinhood’s prediction market has accumulated over 1 million customers, trading 11 billion contracts.

From Stock Trading to Sports Betting Business Logic

Robinhood’s move into sports betting is not a spur of the moment but based on a clear business logic. JB Mackenzie, Vice President of Futures and International Business at Robinhood, told CNBC: “We are working to create a brand new customer experience, making it easier for customers to place orders, and in some cases, providing them with more advanced order types and trading features.” This statement deliberately downplays the “gambling” aspect, emphasizing the financial nature of “trading” and “prediction markets.”

This positioning strategy is extremely critical. Traditional sports betting platforms like DraftKings and FanDuel face strict gambling regulations, while Robinhood packaging its product as “event contracts” and “prediction markets” may enjoy greater regulatory flexibility. Since the US presidential election, the company’s prediction market business has seen explosive growth, proving the viability of this model.

From the user perspective, Robinhood’s advantage lies in platform integration. Users do not need to switch between stock trading and sports betting platforms; all activities are completed within the same app. This seamless experience lowers the participation threshold and is especially attractive to young users familiar with digital platforms. Adam Hickerson, Senior Director of Futures at Robinhood, told Reuters: “There are many competitors, but because we entered the market early, we are able to fine-tune our products.”

While the trading volume of 11 billion contracts is astonishing, it is important to understand how it is calculated. Prediction market contracts are usually in the form of yes/no questions, with prices ranging from a few cents to a few dollars. Therefore, 11 billion contracts do not equate to 11 billion dollars in trading volume; the actual amount may be lower by an order of magnitude. However, the user base of 1 million customers is real and provides a solid foundation for Robinhood’s entry into the NFL playoff market.

Strategic Precision of the NFL Playoff Timing

Launching an enhanced sports betting feature just before the NFL playoffs demonstrates Robinhood’s precise market timing. The NFL is the most popular sports league in the US, and the playoffs are the peak period for viewership and betting activity throughout the year. According to data from the American Gaming Association, legal betting during Super Bowl 2025 exceeded $23 billion, not including illegal and gray market bets.

Three Major Innovations in Robinhood Sports Betting

Pre-set Combination: Similar to parlay betting, users can bet on multiple games simultaneously; only if all predictions are correct do they receive payout, offering higher odds but greater difficulty.

Player Contracts: Allows users to track and trade individual player performance, such as touchdowns, receiving yards, rushing yards, and other precise data.

Advanced Order Types: Provides features similar to stock trading, such as limit orders and stop-loss orders, making sports betting more akin to financial trading.

These features indicate Robinhood’s attempt to bring the professionalism of financial trading into sports betting. Traditional betting platforms usually have simple, straightforward interfaces, while Robinhood offers more complex order types and combination strategies. This differentiated positioning may attract users who are both sports enthusiasts and familiar with financial trading.

The player contract feature is particularly noteworthy. It shifts betting from a simple “who wins or loses” game to precise predictions of individual player performance. This micro-level betting increases engagement depth and persistence. Users not only care about the game outcome but also follow specific players’ performances. Robinhood stated that contracts for other sports are soon to be announced, demonstrating its expansion ambitions beyond football.

Regulatory Gray Areas and Competitive Pressure

The biggest challenge Robinhood faces in entering sports betting is regulatory uncertainty. US states have vastly different laws regarding sports betting—some prohibit it entirely, some only allow in-person betting, and others fully open online betting. Robinhood positioning its product as a “prediction market” rather than “gambling” may be an attempt to circumvent strict restrictions in certain states.

However, how far this semantic game can go remains uncertain. Regulators may question: when users bet on NFL game outcomes and receive monetary returns, how is this fundamentally different from traditional sports betting? If deemed as gambling, Robinhood would need to apply for licenses in each state, significantly increasing compliance costs.

Competitive pressure is also formidable. DraftKings and FanDuel have been deeply involved in the sports betting market for years, with comprehensive odds systems, risk control, and customer loyalty programs. During the NFL playoffs, these platforms will launch numerous promotions, and Robinhood, as a newcomer, will need to invest heavily to gain market share.

Additionally, Robinhood announced an update to its AI investment assistant Robinhood Cortex on Tuesday, indicating a multi-pronged strategy. From stocks, options, and cryptocurrencies to now sports betting, Robinhood is building a comprehensive investment and entertainment platform. Whether this expansion will dilute its core competitiveness remains to be seen.

For users, Robinhood sports betting offers a new form of entertainment and potential profit. However, it is important to recognize that whether packaged as “prediction markets” or “event contracts,” the core remains zero-sum betting, and most participants will lose money in the long run. The data showing 22% of American adults participate in sports betting highlights both the market’s size and its addictive potential and social risks.