Robinhood Markets Inc. is considering expanding into the sports betting industry, as stated by CEO Vlad Tenev. Tenev expressed his excitement for this space during an investor day event, emphasizing its importance to customers and its cultural relevance.
The company is exploring innovative approaches, such as event contracts, which would enable users to trade bets among themselves rather than placing wagers against a traditional sportsbook. Following Tenev's remarks, the stock prices of major sports betting companies experienced slight fluctuations. Penn Entertainment saw a modest increase of 1.9%, while Draft Kings rose by 1.8%. Conversely, Flutter Entertainment's stock dipped by 1.6%. In contrast, Robinhood's stock gained 3.5% on the same day, indicating investor interest in the company's potential new direction.