Massachusetts investigates Robinhood's' Crazy March 'basketball betting business

According to Reuters, Massachusetts securities regulatory officials have launched an investigation into Robinhood's launch of a predictive market covering events such as the NCAA University Basketball Championship. Secretary of State Bill Galvin criticized the feature for "using sports betting to attract young users" and called it another "gimmick" for Robinhood. The regulatory agency has issued a subpoena to Robinhood requesting the provision of user betting data and relevant internal communication records within the state. Robinhood responded that the product is provided by a CFTC registered platform and complies with regulations. Last week, Robinhood announced the launch of its Predictive Market Hub, which supports trading of Federal Reserve interest rates and sports event contracts.