Robinhood excludes mention markets to block insider trading in prediction bets

Robinhood excludes mention markets where traders bet on specific words in speeches to block the misuse of private or sensitive information. The company expects $300 million in annual revenue from its expansion into prediction markets through a partnership with Kalshi. By avoiding these specific contracts, the firm reduces its exposure to legal and reputational risks associated with insider trading. The move follows cases where individuals were charged with using classified military information or leaked Nobel Peace Prize details to place bets. Robinhood partners with Kalshi, which requires identity verification and adherence to U.S. rules, unlike rival Polymarket, which allows trading via crypto wallets without full identity checks.