Overview
- Massachusetts regulators issued a subpoena to Robinhood on March 20, seeking information on its prediction-markets hub and its marketing to state residents.
- The investigation focuses on whether Robinhood's platform improperly blurs the line between investing and gambling, particularly for younger users.
- Robinhood's prediction-markets hub, launched on March 17, allows users to trade contracts on events like NCAA basketball games and Federal Reserve decisions.
- The hub operates through Kalshi, a CFTC-regulated exchange, with Robinhood emphasizing its compliance with federal regulations.
- This marks the latest regulatory challenge for Robinhood, which settled a $7.5 million case in 2024 over gamification practices and a 2021 data breach.