TechFlow reports that on March 25, according to Cointelegraph, securities regulators in Massachusetts have launched an investigation into Robinhood's offering of sports-related event contracts. The platform allows users to trade predictions on a range of events, including basketball tournaments.
As Reuters reported on March 24, Massachusetts Secretary of State Bill Galvin said his office issued a subpoena to Robinhood last week, requesting marketing materials and data related to Massachusetts users trading on sports events such as the college basketball tournament.
Galvin expressed concerns over Robinhood's actions, stating that linking popular sporting events with gambling-like activities—particularly targeting younger users—could steer them away from rational investing.
Previous report, on March 17, Robinhood launched a prediction market hub enabling users to trade via Kalshi, a platform regulated by the Commodity Futures Trading Commission (CFTC). Initially supported event contracts include the college basketball tournament and the federal funds rate decision in May.
