Since 2017, discussing cryptocurrencies at Thanksgiving dinners became a holiday tradition for Americans. This year, however, a new trend has taken over—prediction markets.

The financialization of the U.S. economy can sometimes be perplexing, and debating such topics after Thanksgiving meals might even irritate less patient elders.

But prediction markets? They’re far easier to grasp.

Parlays and meme coins have long been "cultural symbols" for millennials and Gen Z, gradually seeping into older generations as well. Prediction markets aim to expand the user base for betting and redefine the very concept of "wagering."

Platforms like Kalshi and Polymarket are broadening prediction markets beyond sports, allowing users to bet on events such as "the release date of this year’s Spotify Wrapped," "who Trump will nominate as Fed chair," or "how many posts Elon Musk will make on X in a week."

On Wednesday, trading platform Robinhood (HOOD) announced a partnership with Susquehanna International to expand its prediction market business. The news sent investors flocking to HOOD, driving its stock price up by 11%.

This move extends Robinhood’s existing strategy: catering to highly active retail investors while diversifying its platform services to create a "one-stop financial hub."

Robinhood previously collaborated with Kalshi to launch prediction market contracts. The company reported that since introducing the service last year, over 1 million users have traded 9 billion contracts, generating $100 million in annualized revenue.

Analysts note that the Susquehanna partnership will enable Robinhood to directly add more event-based contracts.

However, amid rapid expansion, these platforms face risks of broader backlash and fresh skepticism from financial analysts.

A recent Bank of America report warned that the rapid growth of prediction markets and mobile sports betting introduces new risks.

Analysts, including Mihir Bhatia, wrote: "Easy access and gamified interfaces encourage frequent, impulsive betting, potentially leading to excessive credit expansion and higher loan defaults."

"For investors, this blending of entertainment and speculative finance heightens behavioral risks—pressuring credit quality, increasing delinquency rates, and impacting earnings for issuers and subprime lenders."

Companies promoting these betting services view them as "emerging markets" with untapped user bases and capital. But Bank of America’s team cautioned that such growth strategies could inflate credit balances and amplify losses for lenders.

The report stated: "Liquidity stress indicators are rising—a U.S. News survey found that a quarter of bettors have missed bill payments, and nearly half lack sufficient emergency savings."

"Beyond individual behavior, these trends could strain overall portfolio credit quality, challenging underwriting models and risk pricing. In short, online betting markets introduce a new risk for lenders—one their historical models aren’t equipped to handle, potentially necessitating adjustments."