Robinhood Expands To Include ‘Custom Combos’, Not Parlays

Robinhood introduced a new feature on Friday for its prediction market platform, allowing users to bundle multiple professional football outcomes into a single contract. It continues to expand its prediction market offerings as the NFL heads into the postseason. 

These "Custom Combos" function similarly to parlays offered by traditional sportsbooks such as DraftKings and FanDuel, allowing wagers on combinations of team results and individual player statistics during the NFL postseason. 

The technical structure of these contracts differs from traditional sports betting by using a Request for Quotes (RFQ) system. While a standard sportsbook acts as the house and unilaterally sets odds, Robinhood utilizes the exchange infrastructure of its partner, Kalshi, to solicit bids from anonymous market makers.

Industry associations have pointed out that the NFL playoffs are a peak season for domestic betting, and, according to Joe Maloney, Senior Vice President of Strategic Communications for the American Gaming Association, the popularity of the NFL and the recent legalization of sports betting have driven consumer interest.

Despite this momentum, the question of whether these contracts on prediction market apps are classified as derivatives or gambling remains an issue with state regulators, who claim these companies are circumventing local licensing and tax laws.

Legal disputes cause disruptions in the Nevada market

The move by Robinhood to expand its sports offerings comes at a time when the company suffered a legal blow in Nevada last November, when it agreed to delay new sports contracts. 

US District Judge Andrew Gordon rejected Robinhood's request for a temporary injunction against the Nevada Gaming Control Board (NGCB), having previously taken a different position that allowed the company to operate.

The decision followed a similar ruling against Crypto.com, prompting Robinhood to prohibit Nevada residents from entering new positions on sports events while the litigation continues.

The legal conflict centers on whether federal law under the Commodity Exchange Act preempts state authority to regulate sports-based event contracts. Robinhood initially sued the NGCB in Aug. 2025, arguing that its partnership with Kalshi, which had secured its own preliminary injunction at the time, shielded it from state enforcement.

However, Judge Gordon rescinded that protection, citing new legal developments and the state's historical interest in controlling gaming activity. The chair of the NGCB, Mike Dreitzer, subsequently announced that the board and Robinhood reached a tentative agreement to cease the offerings pending further court proceedings.

Disputes over prediction markets have created a patchwork of availability across the US, with some states, like New Jersey, allowing them, while others, including Maryland and Tennessee, are moving to block them. In Nevada, the court suggested that Robinhood's decision to resume trading in August 2025 contributed to its own legal difficulties.

While the company maintains that the contracts do not violate state law, the ongoing appellate process in the Ninth Circuit, or even Supreme Court involvement, will likely determine the future of prediction markets in the state.