Robinhood explores launching prediction markets outside the US

(Bloomberg/Emily Nicolle) — Robinhood Markets Inc. is exploring an expansion of its prediction markets product to countries outside of the US, a move that would broaden the reach of the already fast-growing and often controversial industry.

The brokerage has been speaking to overseas regulators like the UK’s Financial Conduct Authority about how it might offer prediction markets locally, as demand for the space continues to grow. At issue is how such products might be structured and regulated — while prediction markets are considered futures products in the US, they’re often lumped in with gambling in other regions.

“It’s a swap here in the United States. So the question would be where is swap oversight, let’s say in the UK? That’s a question that we’ve been asking the FCA, how do we wor