A publicly traded (Nasdaq: HOOD), CFTC/SEC/FINRA-regulated US brokerage offering sports/event prediction markets via the Kalshi exchange - not a traditional offshore sportsbook, but with a well-documented history of regulatory fines
Visit Robinhood →Pros
- Publicly traded (Nasdaq: HOOD) and genuinely regulated (SEC, FINRA, CFTC via Kalshi)
- Legal in all 50 US states for prediction-market event contracts
- Massive scale: 27.4 million funded customers, $307 billion in assets
- Trades over 3 billion event contracts monthly
Cons
- $65 million SEC fine (2020) for undisclosed payment-for-order-flow practices
- Record $57 million FINRA fine (2021) for March 2020 platform outages
- $26 million FINRA fine (2025) for anti-money-laundering and supervisory failures
- $30 million NYDFS fine (2022) for cryptocurrency compliance violations
- January 2021 GameStop trading-restriction controversy and Congressional scrutiny
- No sign-up bonus available for sports/event contracts specifically
Our verdict
Robinhood is not a traditional offshore sportsbook - it is a publicly traded (Nasdaq: HOOD), CFTC/SEC/FINRA-regulated US brokerage founded in 2013 by Vladimir Tenev and Baiju Bhatt, with 27.4 million funded customers and $307 billion in assets under custody as of Q1 2026. Its sports/event 'betting' takes the form of regulated prediction-market event contracts, traded through the Kalshi exchange - a CFTC-regulated derivatives market legal in all 50 US states - rather than a conventional sportsbook, and the platform now trades over 3 billion event contracts monthly. We report its genuine, well-documented regulatory history directly rather than gloss over it: the January 2021 GameStop trading-restriction controversy sparked bipartisan Congressional criticism after Robinhood restricted purchases to meet a spike in clearing-house collateral requirements; the SEC fined Robinhood $65 million in December 2020 for failing to disclose payment-for-order-flow practices and making misleading statements about execution quality; FINRA fined Robinhood a record $57 million in June 2021 over March 2020 platform outages, and a further $26 million in March 2025 for anti-money-laundering and supervisory failures (with $3.75 million in ordered customer restitution); and New York's financial regulator fined Robinhood's crypto arm $30 million in 2022 for compliance violations. There is no sign-up bonus for sports/event contracts specifically - Robinhood's separate $5-200 stock sign-up bonus does not extend to prediction markets. Given its genuine regulatory status and scale, balanced against a real and substantial fine history, we consider Robinhood a legitimate but imperfect platform for US prediction-market betting.
How we rated it
Sportsbook (event contracts) (36%)7
A genuine, publicly traded, large-scale platform (27.4 million funded customers, $307 billion in assets), trading over 3 billion event contracts monthly via the CFTC-regulated Kalshi exchange - legal in all 50 states.
Trust & licensing (27%)6.5
Genuinely regulated (SEC, FINRA, CFTC via Kalshi) and publicly traded, but with a substantial documented history of regulatory fines: a $65 million SEC fine for undisclosed payment-for-order-flow, a record $57 million FINRA penalty for 2020 outages, a $26 million FINRA AML/supervisory penalty in 2025, and others.
Customer support (18%)5.5
A large, established platform, but the January 2021 GameStop trading-restriction controversy and multiple regulatory findings around execution quality and supervisory failures reflect real customer-facing trust concerns.
Bonuses & value (18%)1
No sign-up bonus applies to sports/event contracts specifically - Robinhood's separate $5-200 stock sign-up bonus does not extend to prediction-market event contracts.
Welcome bonus
Quick facts
| Founded | 2013, by Vladimir Tenev and Baiju Bhatt |
| Public listing | Nasdaq: HOOD (IPO July 2021, ~$32B valuation) |
| Scale | 27.4 million funded customers, $307B in assets under custody (Q1 2026) |
| Sports/event product | Event contracts (prediction markets) via the CFTC-regulated Kalshi exchange, legal in all 50 states |
| Regulatory fines | SEC $65M (2020, PFOF disclosure); FINRA $57M (2021, outages) and $26M (2025, AML/supervisory); NYDFS $30M (2022, crypto) |
| US status | No sign-up bonus for sports/event contracts (separate $5-200 stock bonus does not apply) |
Where Robinhood is licensed
Robinhood appears on the official register in 1 country — 1 for sports betting and 0 for casino. We only feature it in markets where it holds a licence to accept you.
North America (1)
About Robinhood
Robinhood is a publicly traded (Nasdaq: HOOD), CFTC/SEC/FINRA-regulated US brokerage offering sports/event prediction markets via the Kalshi exchange - a genuine, large-scale, legal platform with a substantial, well-documented history of regulatory fines including a $65M SEC penalty and record FINRA fines.
FAQ
Is Robinhood a licensed/regulated platform?
Yes - it is a publicly traded (Nasdaq: HOOD) US brokerage regulated by the SEC and FINRA, with its prediction-market event contracts traded via the CFTC-regulated Kalshi exchange.
How does sports betting work on Robinhood?
Through prediction-market event contracts on the Kalshi exchange, not a traditional sportsbook - these are CFTC-regulated derivatives legal in all 50 US states.
Has Robinhood had regulatory problems?
Yes - documented fines include a $65 million SEC penalty, a record $57 million FINRA fine, a $26 million FINRA AML/supervisory fine, and a $30 million NYDFS crypto-compliance fine, among others.
Who owns Robinhood?
Robinhood Markets, Inc. (Nasdaq: HOOD), founded by Vladimir Tenev and Baiju Bhatt in 2013.
Does Robinhood have a welcome bonus for sports contracts in the US?
No - Robinhood's $5-200 stock sign-up bonus does not apply to prediction-market/event-contract trading.
