From Yahoo Finance: 2025-03-24 13:38:00

Massachusetts securities regulator investigates Robinhood’s new prediction-markets hub allowing users to bet on events like March Madness. Secretary of State Bill Galvin concerned it could lure young investors away from sound investing. Subpoena sent to Robinhood seeking data on users trading college sports event contracts. Debate over event contracts likened to gambling. Robinhood silent on the matter.

Robinhood introduces prediction markets through KalshiEX, allowing customers to bet on college basketball tournaments. CFTC request led Robinhood to scrap Super Bowl event contracts. Robinhood in contact with CFTC regarding prediction markets. Subpoena seeks internal communications about decision to launch college sports event contracts. CFTC yet to comment on the matter.

Galvin’s office investigating Robinhood’s decision to launch college sports event contracts despite CFTC’s prior request. CFTC nominee Quintenz and Trump Jr. connected to Kalshi. Robinhood previously faced accusations of encouraging risky trades through gamification. Robinhood agreed to pay $7.5 million in 2024 to resolve claims from previous investigations. Legal standoff between Galvin and Robinhood continues.



Read more at Yahoo Finance: Massachusetts regulators probe Robinhood over March Madness basketball betting