Prediction markets are moving into new territory, breaking
past previous records in October. Data from Kalshi and Polymarket shows more
than $7.4 billion in trades during the month, the strongest performance these
platforms have seen to date.
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Robinhood has also reported a sharp rise in prediction
activity. The broker said users traded 2.3 billion event contracts between July
and September, followed
by 2.5 billion in October alone. Together with Bitstamp, the platform now
generates around $100 million in annualised revenue. Total revenue for the
third quarter reached $1.27 billion, an increase of 129% from the same period
last year.
October Trading Dominated by Sports
Kalshi
remained the top venue, handling about $4.4 billion in trades, while
Polymarket followed with around $3 billion. A notable shift occurred within the
market itself: sports contracts overtook political and economic predictions as
the most active category.
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In a single week, from October 20 to 27, Kalshi processed
over $1.1 billion in sports-related bets, compared with just $51 million in
political trades.
Prediction Markets Rise on Multiple Factors
Industry observers point to two factors behind the rise.
First, recent changes in U.S. tax discussions may have made prediction markets
more appealing than traditional sportsbooks.
Second, growing interest in potential token airdrops has
drawn a wave of crypto-native participants.
Robinhood $HOOD now has 11 separate business segments generating more than $100 Million of revenue on an annualized basis pic.twitter.com/yBx9pGLWya
— Evan (@StockMKTNewz) November 5, 2025
Romania Blocks Polymarket Over Gambling
The surge in trading has also caught the attention of
regulators. In late October, Romania’s National Office for Gambling ordered
local internet providers to block Polymarket, arguing that the platform
operates as an unlicensed betting site.
The agency said Polymarket’s peer-to-peer model meets the
country’s legal definition of gambling and lacks the required safeguards on
responsible betting and money laundering.
The action highlights a broader regulatory challenge facing
crypto-linked prediction platforms. While these services often describe
themselves as marketplaces for event trading, regulators across Europe are
beginning to view them through the same lens as online gambling operations.
This article was written by Tareq Sikder at www.financemagnates.com.
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