Robinhood Restricts Some Prediction-Market Contracts Over Insider Trading Concerns

Prediction markets allow traders to buy and sell contracts tied to event outcomes. Robinhood partnered with Kalshi to launch such products in 2025, with estimated annual revenue of $300 million. The U.S. Commodity Futures Trading Commission regulates contracts involving real money, but states continue to question whether they amount to unlicensed gambling. Trading by people using nonpublic information could also undermine market integrity and the security of sensitive information.

On April 12, 2026, Robinhood UK President Jordan Sinclair said the platform had restricted some prediction markets and event contracts, including “mention markets” that allow bets on words used in speeches, to guard against market manipulation and insider trading. The move followed unusually large and accurate bets on Polymarket before the United States attacked Iran in February. Israeli authorities that same month charged two people suspected of using classified military information to place bets.