Massachusetts issues subpoena to Robinhood over sports prediction market

Massachusetts securities regulators have reportedly launched an investigation into Robinhood's offer of contracts for sports-related events.
According to foreign media on the 24th (local time), Massachusetts Secretary of State Bill Galvin
Galvin provided information about the number of Massachusetts-based users who traded sporting event contracts related to the college basketball tournament and marketing materials.
"Robinhood is taking advantage of sporting events, which are particularly popular with young people, to promote gambling-like elements to its online platforms," Galvin said.
"This is just another deception. Robinhood is a deceptive company trying to lure investors away from sound investments," he said.
On March 17, Robinhood launched its prediction market hub through Kalshi, a prediction platform regulated by the Commodity Futures Trading Commission (CFTC).
The platform will offer event contracts for the college basketball tournament and the May Federal Reserve Rate.
"Event contracts are regulated by the CFTC and are offered through entities registered with the CFTC," Robinhood said in a statement.
A spokesperson said: "Prediction markets have become an increasingly important market for both retail and institutional investors and we are committed to providing these products to our retail clients in a safe and regulated manner.
We are proud to be one of the first platforms to do so," he added.