Robinhood's prediction market revenue could reach $1.7 billion by 2028

Robinhood's prediction market business is receiving positive forecasts from analysts. Gautam Chhugani of Bernstein expects revenue from event contracts to exceed the company's crypto trading revenue in 2028.

Chhugani reiterated that Robinhood Markets, which trades on the Nasdaq, could generate $1.7 billion in revenue from prediction markets in 2028. This figure is slightly above the $1.6 billion expected from crypto trading. The analyst also revised upward his overall revenue forecasts for the company for 2026, 2027 and 2028.

The analyst expects $650 million in revenue from event contracts this year. If this estimate proves accurate, the business line will nearly double over the next two years. Robinhood will report its third-quarter results after the market closes on October 27, and the report may provide more information on how the prediction market business is performing.

In the second quarter, Robinhood's revenue from prediction markets exceeded its crypto business revenue on a quarterly basis for the first time. Coinbase is another notable company in this area. Chhugani expects Coinbase to generate $2 billion in revenue from event contracts and derivatives in 2028, more than three times the $600 million estimated for 2026.

The US prediction market sector is concentrated in the hands of a few large operators. However, established brokerages and crypto platforms are increasingly entering this market to attract customers.