Robinhood has pulled several prediction‑market contracts from its platform, citing worries that they could be used for insider trading and market manipulation. Jordan Sinclair, president of Robinhood UK, said the firm is “very focused on market abuse” and will not list every event contract. The move trims exposure to “mention markets,” where bets hinge on specific words spoken in speeches or earnings calls.

Recent incidents have fueled regulators’ concerns. Large, well‑timed wagers on Polymarket preceded the U.S. strike on Iran, and Israeli prosecutors charged two individuals for betting on classified military operations. A former MrBeast editor was fined $20,000 after Kalshi reported insider‑trading allegations tied to future video scripts. Authorities monitor such activity closely. Such cases underscore the abuse risk Sinclair referenced.

Robinhood’s prediction‑market venture, launched with Kalshi and smaller partner ForecastEx, was projected to generate $300 mn in annual revenue. The broker recently bought LedgerX with Susquehanna to lessen reliance on Kalshi, while avoiding Polymarket’s crypto‑wallet model that bypasses traditional KYC. By narrowing its offering, Robinhood aims to protect its fast‑growing business, which traded more than 12 billion contracts in 2025. The strategy reinforces its compliance posture.