It, do you have any more insight on kind of who's using the prediction markets and to what extent and, and, and what else they might be doing on the platform?

Yeah, so I mean, what's interesting is, is most of our clients are actually trading additional assets.

So those that come in are not coming to Robinhood to just trade prediction markets.

They, they can, but what we actually see is they actually look to trade other products.

So we see that, you know, within less than a week of them opening and trading a prediction market product, they're actually looking at trading equities.

They're also looking at trading crypto, uh, and they may even look at trading options.

But really what we see is it's part of a diversified view.

Why might there be a difference, or, or how should we interpret that data? Is it take it at face value if your contract says 60/40, it's 60/40, or do we need to build, build some kind of, um, you know, and, you know, what is that margin that might, you know, be some difference in there in that spread?

Um, what do you see as the future of the prediction market space? Do you think eventually that the space will move [chuckles] past, uh, sports and politics, for example? Or how do you and Robinhood view the future of this space?

space?Yeah, I think it's a great question, and I think that when you look at the marketplace, what you really see is that the headline news is very much about sports.

And I think there's a couple of reasons why you see that is we all sort of have a passion when it comes to sports, right? So, um, whether you're, whether you are a fan of the Premiership football or you are American football, it doesn't matter because we all just enjoy watching, um, athletics and sports.

And I think because those are always on television, there's always sort of a linking between it, and people are asking those questions.

We have never thought that sports was gonna be the only thing for prediction markets.

In fact, what we have found is we're not necessarily competing with, I'll say, the, the true sports gamblers or the OSBs, like Flutter and so forth, that are out there that are going after a slightly different customer base.

What we find is that we are really catering to the customer who wants to trade the, the, the football, the American football game that's on television because they just wanna do it casually, but they're in their, in their overall platform together.

I'm, I'm curious to hear what is the number one thing that is holding the prediction markets, uh, product back currently, and how do you look at the future if you think about That particular challenge

Hmm.

And, and the reason I tell the story was 'cause that created engagement.

That's exactly what we see.

The Fed is a perfect example of where we see a large increase of traders that come into the marketplace around the time of the Fed rate cut because what they've now done is they've taken all the various information that's been out there in the marketplace.

They've looked at the dot plot that the Fed releases.

They've listened to the various news stories that have come through, and they, what they've done is they've taken that, and then now they're taking a decision.

And if you think about traditional markets, there's no market you can take that, that, and trade in that actually is explicitly about the Fed.

Mm.

From a prediction market's point of view, how is this going to evolve with regulators now coming out and saying perhaps we're gonna narrow the scope of what you're allowed to bet on when it comes to sports?

Well, I, I think it's interesting.

This is sort of a natural evolution I would say for the overall marketplace.

If you go back almost 12 months ago, many of these markets didn't exist and the players of the markets didn't exist.

And so I think what you're really starting to see is that when you can create a great marketplace, which prediction markets do, especially on the sports side, it generates interest from customers to come through and participate in those markets.

We've also seen that, you know, some of the traditional gaming, um, firms out there like Hard Rock and MGM say, "Well, it's not impacting it," which means there's new customers coming into that marketplace.

And so again, I think for what it does more than anything else is it's a new opportunity and avenue for people to get transparent pricing to access markets where they can get in and out of markets in real time.

What's Robinhood's response to that, plan for that? How do you differentiate yourself when there's so many people trying to get into the space?