Date of Posting: October 13, 2025, 08:42h.

Last Updated: October 13, 2025, 08:42h.

• Company is actively involved in prediction markets through its partnership with Kalshi
• Executive indicates Robinhood is open to potential acquisitions in the prediction market sector
• He hinted that the company could also explore developing its own solutions

As prediction markets gain traction, a key player in the sector may be on the lookout for acquisition opportunities.

Robinhood Markets (NASDAQ: HOOD), which has already made its mark in prediction markets through collaboration with Kalshi, is open to exploring opportunities in the event contracts sector, as stated by JB Mackenzie, Vice President and General Manager of Futures and International, in a conversation with Reuters.

“As a company, we are looking for any acquisition opportunities that may arise,” said the executive. “I’m always on the lookout for interesting opportunities, and if we identify one that aligns with our goals, we will pursue it.”

Mackenzie mentioned that Robinhood has a strong team of engineers capable of developing impressive products, leading to speculation that the company might consider creating its own prediction market platform.

Potential Acquisition Targets for Robinhood in Prediction Markets

While Mackenzie did not specify any particular prediction market businesses that Robinhood might target for acquisition, the evolving industry is rife with speculation regarding potential deals.

What is evident is that with $4.2 billion in cash as of June 30, based on company reports, and a stock price that has surged by 277.56% year-to-date, Robinhood has ample resources to pursue a significant acquisition in the prediction market sector.

Based on recent valuation insights, while Polymarket’s valuation of $9 billion to $10 billion might be steep for Robinhood, its partner Kalshi could be potentially attainable at around $5 billion. However, it appears unlikely that either company is eager to sell at this time. Notably, Robinhood doesn’t necessarily need to engage in a multi-billion dollar acquisition to make a significant impact in the prediction market arena.

Regarding Kalshi…

In the same Reuters conversation, Mackenzie did not clarify how a potential acquisition in the prediction market space might affect Robinhood’s existing partnership with Kalshi. If Robinhood pursues such a strategy or develops its own event contracts platform, it could negatively impact Kalshi, given that estimates suggest Robinhood clients contribute 25% to 35% of Kalshi’s daily volume.

Last month, analyst Patrick Moley from Piper Sandler projected that Robinhood’s prediction markets business, which shares its revenues equally with Kalshi, could grow into a $200 million entity. This prospect may prompt the company to invest more in this sector while considering a self-sustained approach.

There are signs that Robinhood may be leaning towards this strategy. In late September, Mackenzie indicated that Robinhood is exploring international expansion into prediction markets, though he did not mention Kalshi in this context. Following its latest funding round, Kalshi announced plans to expand its reach to 140 countries.