PANews reported on March 25 that according to Reuters, Massachusetts securities regulators have launched an investigation into Robinhood for launching a prediction market covering events such as the NCAA college basketball tournament. Secretary of State Bill Galvin criticized the feature for "using sports betting to attract young users" and called it another "gimmick" of Robinhood. Regulators have issued a subpoena to Robinhood, demanding user betting data and related internal communication records in the state. Robinhood responded that the product is provided by a CFTC-registered platform and complies with regulations.
As reported last week, Robinhood launched the prediction market Hub, which supports trading in Federal Reserve interest rates and sports event contracts .
