Robinhood Markets (NASDAQ: HOOD) is seeking to offer event contracts to its consumers in various regions of the world after witnessing the quick success of prediction markets in the US.

The global demand for access to prediction markets is growing, according to the business that created the popular investing software. The financial services company's vice president and general manager of futures and international, JB Mackenzie, told Bloomberg that Robinhood customers outside of the US are excited about prediction markets.

"We’re definitely looking to offer it globally, and my goal or focus is to make sure it’s a regulatory-compliant product everywhere we go,” Mackenzie said in the interview.

The European Union (EU) and the United Kingdom are currently Robinhood's focus regions for non-US prediction markets operations. Mackenzie told Bloomberg that the company had a conversation with the UK's Financial Conduct Authority (FCA) on how to legally present event contracts to clients in that nation.

The Prediction Markets Business at Robinhood is Growing

Through its relationship with Kalshi, Robinhood derivatives clients in the US have access to certain event contracts, including sports. The two cents per contract cost that traders pay is divided equally between Kalshi and Robinhood under their agreement.

That company is doing really well. According to some estimates, Robinhood contributes between 25% and 35% of Kalshi's daily transaction volume. According to Patrick Moley, an analyst at Piper Sandler, prediction markets based on Robinhood's projected September run rate could generate $200 million or more in income for the company annually last week.

CEO Vlad Tenev's announcement on Monday that over four billion event contracts have been traded on Robinhood—more than half of which have been cleared in the current quarter—bolstered that optimistic forecast and confirmed the company is benefiting from football derivatives.

Robinhood is conscious that the regulatory environment in other markets is different from that in the US when it comes to introducing event contracts.

“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 work it?” said Mackenzie in the Bloomberg interview.

Europe and the UK May Be Top Markets

Because bettors and traders in those regions are already familiar with the idea of event contracts, Europe and the UK may be the best places for Robinhood to begin expanding its international prediction markets.

Similar to Kalshi and others in the US, Flutter Entertainment's (NYSE: FLUT) Betfair Exchange provides markets on sports, politics, and horse racing.

That is to say, the idea is not a problem in Europe or the UK, which may indicate that regulatory obstacles will be the main obstacle Robinhood must overcome before introducing prediction markets outside of the US.