Robinhood restricts event contracts to block insider trading

Robinhood customers cannot access certain prediction markets, including mention markets where traders bet on specific words used during earnings calls or speeches. The company has barred these event contracts to mitigate risks of market abuse and insider trading. Jordan Sinclair, president of Robinhood UK, stated the firm is focused on preventing users from gaining an unfair advantage through privileged information. This caution follows instances of unusually large bets preceding the U.S. attack on Iran in February and charges filed by Israeli authorities against two people who used classified information to bet on military operations. Robinhood's partnership with Kalshi to offer prediction markets is expected to generate $300 million in yearly revenue.