Robinhood excludes some prediction market contracts due to concerns about market manipulation and insider trading risks.

As Robinhood accelerates its expansion into prediction markets, it has proactively excluded some contract products due to concerns about potential market manipulation and insider trading risks. Jordan Sinclair, President of Robinhood UK, stated that the company is highly concerned about market abuse and will not offer users all prediction markets or event contracts, selectively launching products more suitable for its clients. Recent incidents of "precision betting" have raised regulatory concerns. For example, unusually large bets appeared on Polymarket before the US action against Iran; Israeli regulators also prosecuted two individuals for using confidential information to participate in betting. Furthermore, "market mentions" (such as betting on words appearing in speeches) are explicitly excluded from Robinhood's product offerings due to their susceptibility to manipulation. Currently, Robinhood primarily provides compliant prediction market services through partnerships with Kalshi and ForecastEx, prioritizing regulated platforms to reduce information misuse and cross-border compliance risks. In contrast, Polymarket, which is not subject to similar regulations, allows users to trade through crypto wallets and has more lenient identity verification. Robinhood previously projected that forecasting markets would become a significant growth engine, with CEO Vlad Tenev stating that the business would be one of the fastest-growing segments by 2025, potentially driving trillions of dollars in annual transaction volume. (Financial Times)