Robinhood Offers Prediction Market 'Custom Combos'—But Don't Call Them Parlays
Robinhood has launched “Custom Combos” for football prediction markets, allowing users to wager on multiple outcomes, such as individual player performance, in contracts regulated by the Commodity Futures Trading Commission. Unlike traditional parlays offered by companies like DraftKings and FanDuel, Custom Combos leverage Kalshi's platform, where payouts are set through Requests For Quotes (RFQs) from market makers instead of fixed house odds. This system allows any participant to submit quotes and take the other side of a wager. Custom Combos are available in all U.S. states except Maryland and Nevada due to regulatory restrictions. Prediction markets have become Robinhood’s fastest-growing product line by revenue. Sports-related trading comprises the vast majority of Kalshi’s $1.8 billion platform volume, a dramatic increase from the previous year. The rising popularity of parlays in the U.S., with 30% of Americans participating, has raised concerns about loss-chasing behaviors. Legal and regulatory debates continue over whether such markets are financial instruments for information discovery or unregulated gambling. Robinhood charges a fee of one cent per contract traded.
