Massachusetts Investigates Robinhood's Prediction Markets Hub

State regulators subpoena Robinhood over March Madness betting, citing concerns about gambling behavior linked to brokerage accounts.

Massachusetts Secretary of State Bill Galvin issued a subpoena to Robinhood on March 20, requesting marketing materials and data on state residents trading event contracts.
Robinhood launched its prediction markets hub on March 17, allowing users to bet on events like NCAA basketball games and Federal Reserve decisions.
Regulators are scrutinizing the platform for potentially encouraging gambling behavior, particularly among young users, by integrating sports betting into brokerage accounts.
Robinhood asserts that its prediction markets hub complies with Commodity Futures Trading Commission (CFTC) regulations and operates through CFTC-registered entities.
Despite regulatory scrutiny, Robinhood's stock has risen significantly, reflecting strong investor interest in its new offerings.