Robinhood is taking equity stakes in both Crypto.com and OG.com as part of a move to ramp up its prediction market business. Under the deal, Robinhood will route event contracts through OG.com's CFTC-regulated infrastructure, expanding its own footprint in this category.

What Happened

The deal sees Robinhood picking up shares in Crypto.com and OG.com, along with a tech integration with OG.com to handle event contract routing. OG.com runs under CFTC oversight, and Robinhood plans to use this regulated setup for its event contract operations.

How This Changes the Prediction Market Game

By routing event contracts through OG.com's regulated rails, Robinhood will be able to offer broader access to these products. The partnership with OG.com is all about the tech stack for event contracts, while the equity stakes in both Crypto.com and OG.com are part of a bigger play to grow Robinhood's prediction market business.

The Regulatory Angle

The key piece here is Robinhood tapping into OG.com's CFTC-regulated infrastructure for handling event contracts. This means Robinhood's prediction market deals will go through a platform that falls under the watch of the relevant regulator.