{"id":125742,"date":"2025-03-25T02:16:15","date_gmt":"2025-03-25T02:16:15","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125742"},"modified":"2025-03-25T02:16:15","modified_gmt":"2025-03-25T02:16:15","slug":"massachusetts-subpoenas-robinhood-over-sports-prediction-markets","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125742","title":{"rendered":"Massachusetts subpoenas Robinhood over sports prediction markets"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsMassachusetts\u2019 securities regulator has reportedly launched a probe over Robinhood\u2019s prediction markets offering that has allowed users to bet on the outcomes for a slew of events, including basketball tournaments.\u00a0<br \/>\nReuters reported on March 24 that Massachusetts Secretary of State Bill Galvin said his office subpoenaed Robinhood last week to get information on its marketing materials and the number of Massachusetts-based users that traded sports events contracts on college basketball tournaments.<br \/>\nGalvin said he was concerned the trading platform was \u201clinking a gambling event on a popular sports event that\u2019s especially popular to young people to a brokerage account.\u201d<br \/>\n\u201cThis is just another gimmick from a company that\u2019s very good at gimmicks to lure investors away from sound investing,\u201d he added.<br \/>\nRobinhood launched a prediction markets hub on March 17 that would be initially available through the Commodity Futures Trading Commission-regulated prediction platform Kalshi and would feature event contracts on college basketball tournaments and the May federal funds rate.\u00a0<br \/>\nA Robinhood spokesperson told Cointelegraph that the event contracts \u201care regulated by the CFTC and offered through CFTC-registered entities.\u201d<br \/>\n\u201cPrediction markets have become increasingly relevant for retail and institutional investors alike, and we\u2019re proud to be one of the first platforms to offer these products to retail customers in a safe and regulated manner,\u201d the spokesperson said.<br \/>\nRobinhood Markets (HOOD) share price remained relatively flat after the close of trading on March 24 after an over 9% jump over the day to close at $48.36, according to Google Finance.<br \/>\nRobinhood is up nearly 30% so far this year but has fallen from its Feb. 14 all-time peak of $65.28. Source: Google Finance\u00a0The CFTC and Galvin\u2019s office did not immediately respond to requests for comment.<br \/>\nEvent contracts are agreements that allow users to bet on the outcome of essentially anything, from sports games to election outcomes and the price of cryptocurrencies.<br \/>\nRelated: Coinbase in talks to buy derivatives exchange Deribit: Report\u00a0<br \/>\nThey were popularized on the blockchain-based prediction market Polymarket and non-decentralized rival Kalshi and have caught the ire of some regulators.<br \/>\nLast month, Robinhood scrapped event contracts allowing for bets on the Super Bowl a day after launching the products after the CFTC asked it to.\u00a0<br \/>\nThe Massachusetts probe also requested Robinhood hand over internal communications about the decision to roll out the recent college basketball events contracts after the CFTC\u2019s request to stop the Super Bowl contracts.<br \/>\nThe CFTC also reportedly asked Kalshi and Crypto.com early last month to explain how both of their Super Bowl event contracts complied with derivatives regulations.<br \/>\nMagazine: Memecoins are ded \u2014 But Solana \u2018100x better\u2019 despite revenue plunge\u00a0<a href=\"https:\/\/cointelegraph.com\/news\/massachusetts-probe-robinhood-sports-prediction-markets?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsMassachusetts\u2019 securities regulator has reportedly launched a probe over Robinhood\u2019s prediction markets offering that has allowed users to bet on the outcomes for a slew of events, including&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125742"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125742"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125742\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125742"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}