Published on: June 4, 2026, 01:37h.
Updated on: June 4, 2026, 01:37h.
- Robinhood announced it will channel certain World Cup contracts through Rothera, its proprietary prediction market.
- This move may influence the volume sent to partner Kalshi.
- Rothera is a collaboration between Robinhood and Susquehanna International Group.
In anticipation of the World Cup, Robinhood Markets (NASDAQ: HOOD) revealed today that it will direct a segment of event contracts traded by its customers for the prestigious football (soccer) tournament through Rothera — its proprietary prediction market. This decision may impact the typical volume that the brokerage directs to Kalshi.
Last November, Robinhood announced a partnership with market maker Susquehanna International Group to establish a novel futures and derivatives exchange and clearinghouse, expanding its reach in the prediction market sector, highlighted as one of its quickest-growing areas. Rothera, licensed by the Commodities Futures Trading Commission (CFTC), emerged from this endeavor, and the World Cup will act as a pivotal test for the emerging prediction market.
“This marks a significant achievement for Robinhood’s prediction markets initiative as we direct event contracts to Rothera, a CFTC-licensed exchange and clearinghouse managed independently under Robinhood’s collaboration with Susquehanna International Group,” the company stated.
For now, the brokerage is directing “a select range” of Major League Baseball and World Cup derivatives through Rothera, with plans to “expand this offering over time to include further events.”
Impact of Robinhood’s World Cup Strategy on Kalshi
Although not explicitly mentioned in Robinhood’s announcement, the decision to funnel some World Cup trading through Rothera may have repercussions for Kalshi — the prediction market with which Robinhood has maintained a longstanding alliance.
When the partnership with Susquehanna became public last November, it stirred discussions regarding potential changes to Robinhood’s relationship with Kalshi, where both parties previously shared in the economics of the event contract volume routed to the prediction market operator.
According to 2025 forecasts, Robinhood was contributing to 25% to 35% of Kalshi’s daily turnover, though it’s believed these numbers have decreased. However, it’s evident that Robinhood is motivated to retain a larger share of its event contract business internally, having processed over “12 billion event contracts” last year, with the figure climbing to 16 billion year-to-date. Furthermore, the company is demonstrating an eagerness to compete on event contract fees.
“As of June 1, we unveiled a new pricing model where commission fees vary based on the contract price and order size, offering lower fees at the extremes (contracts priced near $0.01 and $0.99) and a cap of $0.01 per contract,” the company stated.
Members of Robinhood Gold can benefit from up to 50% savings on these prices, potentially leading to reductions of up to 95% compared to the former pricing structure.
The World Cup: A Lucrative Opportunity for Robinhood
With the event being held in North America, the quadrennial World Cup presents a prime opportunity for Robinhood to leverage Rothera more effectively. It is anticipated to be lucrative for both prediction markets and sportsbooks, as total sports betting on this event could surpass $4 billion in the U.S.
“World Cup prediction markets enable customers to speculate on various game and tournament outcomes, transforming their unique sports insights into trading opportunities,” explained the financial services provider.
Robinhood’s World Cup derivatives will encompass event contracts related to game winners, totals, group winners, teams progressing from group stages, and the Golden Boot winner, among numerous other selections.