Vlad Tenev, Robinhood’s CEO and the man who somehow looks like both a tech visionary and “Roaring Kitty” just announced a pivot that’s got everyone freaking out (again). This time, the brokerage that turned investing into a Tinder-like swipe fest is jumping into the world of sports betting. And if you’re wondering why, the answer is simple: degenerates gotta degenerate.

At Robinhood’s first-ever investor day (yes, they have those now), Tenev hinted at a new frontier for the company. “We’re keenly looking into that space,” he said. “Nothing to announce just yet, but it’s so important to our customers and in culture that we’re excited about it.”

Let me translate that into English for you: Robinhood sees millions of Americans putting their rent money on 14-leg parlays and thinks, “Yeah, we could make that user-friendly and free of commission fees.” And why not? The company already gamified stock trading; rolling the dice on Chiefs vs. Eagles feels like a natural progression.

But don’t expect a carbon copy of DraftKings or FanDuel. Tenev teased something closer to Robinhood’s event contracts (a marketplace where users can buy and sell positions based on the outcomes of events). Think of it like trading Tesla stock, except instead of betting on Elon’s next tweet, you’re wagering on whether LeBron will drop 30 points.

When Tenev lobbed this grenade into the room, it made some stocks do a little jig. Shares of Penn Entertainment, Flutter, and DraftKings dipped before rebounding quickly. DraftKings closed up 1.8%, Penn rose 1.9%, and Flutter took a hit, ending the day down 1.6%.

Robinhood itself? It rose 3.5% on the day (and is up another 3.5% today). Apparently, investors liked the idea of another way to lose money on the app. After all, 2024 has been a banner year for the company, with its stock up 213%. Who needs blackjack tables when you can double down on Robinhood stock?

Let’s not kid ourselves: sports betting is the logical next step for Robinhood. The company is all about cultural relevance, and there’s nothing more relevant these days than throwing $50 on a game you stopped watching after the first quarter. Plus, sports betting is a $182 billion market. Even if Robinhood captures a slice of that, it’s a win for Edna Vlad.

Tenev also knows the brokerage needs to keep expanding. From AI-powered financial advice to its acquisition of TradePMR, Robinhood’s strategy is to grow in every direction possible. Whether sports betting will be a sustainable side hustle or just another flashy distraction remains to be seen, but hey, at least it’s a $182 billion distraction.

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Stock.News has positions in Robinhood and Tesla.