Massachusetts Regulator Launches Probe into Robinhood’s Prediction Markets Hub
Massachusetts' securities regulator has initiated a probe into Robinhood regarding its new in-app prediction markets hub, which allows users to bet on event outcomes, including sports match-ups. Key points include:
- The investigation was confirmed by Massachusetts Secretary of State Bill Galvin, who issued a subpoena for user data and marketing materials.
- Robinhood's response to the subpoena is due on April 3.
- The prediction market, launched on March 17, includes contracts related to March Madness and the federal funds rate.
- Robinhood stated that its prediction market products are regulated by the Commodity Futures Trading Commission (CFTC).
- Previously, Robinhood had delayed launching this feature at the request of the CFTC ahead of the Super Bowl.