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Chronicles

The story behind the story

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Robinhood plans to route some 2026 soccer World Cup bets to Rothera, shifting away from Kalshi as it seeks to diversify its prediction markets providers

Robinhood Markets Inc. is kickstarting a shift away from its longstanding prediction markets partner Kalshi Inc., using the World Cup to road test its own infrastructure.

Bloomberg Emily Nicolle

Context & Ripple Effects

Robinhood’s prediction-markets rollout began with Kalshi contracts tied to the federal funds rate and March Madness, after an earlier Super Bowl offering was withdrawn amid CFTC pushback. The company had also previously offered election contracts through its derivatives unit and ForecastEx.

The World Cup test marks a change from that partner-led approach: Robinhood is using a high-profile sports event to trial its own infrastructure while adding Rothera alongside Kalshi.

First-order effects

  • Robinhood will route some World Cup contracts to Rothera, giving it an operational test of a second prediction-markets provider and reducing its immediate reliance on Kalshi.
  • Kalshi faces a smaller role in at least this Robinhood event offering, while Robinhood gains more leverage over provider selection and execution design.

Second-order effects

  • Kalshi and other prospective providers will have to compete more directly on reliability, market coverage, integration terms, and the ability to support major sports-event demand.
  • A multi-provider setup can let Robinhood compare contract availability and execution across venues, potentially shaping which prediction-market products it promotes most prominently to retail users.

Third-order effects

  • If platforms increasingly separate their consumer interface from the underlying prediction-market provider, distribution could become less concentrated around a single venue and more competitive at the infrastructure layer.
  • The earlier CFTC-related withdrawal indicates that expansion in sports-linked contracts will remain constrained not only by technology and partnerships, but also by regulatory tolerance for the products offered.

The trend: Retail brokerages are moving to make prediction markets a broader product category while seeking more control over the providers and infrastructure behind those contracts.