Massachusetts regulators probe Robinhood over March Madness basketball betting

Written by Nate Raymond

Boston (Reuters) – The best securities organizations in Massachusetts launched an investigation into the Robinhood (Hood) trading platform (Hood) to launch a predictive market center that allows users to bet on the results of a group of events, including championships at March Madness College.

In an interview with Reuters on Monday, the foreign minister of Massachusetts Galvin said in an interview with Reuters on Monday, that Robenol was “linking the gambling event in a famous sporting event that is especially popular for young people in the mediation account.”

“This is just a way to circumvent the other from a very good company in tricks to attract investors away from proper investment,” said Galvin, a democrat known as one of the most organized securities organizations in the country in the country.

An official said that his office sent Robvo with a summons last week looking for information related to the number of intermediary account users who asked to circulate sports events in the college with the start of men and women’s basketball championships.

The juvenile contracts allow merchants to bet on specific results, which provides opportunities for profit from predictions of everything, from sport and entertainment to politics and economics.

Its increased popularity has fueled a hot debate among the merchants who embraced the emerging assets category and the critics who likened it to gambling.

The official said that the summons is looking for copies of Robinhood marketing materials and asking the company to determine which and all the population in the state with brokerage accounts with the company that requested the circulation of university sporting events.

Menlo Park did not respond, in California, to request a comment.

Robinhood said that the prediction market will initially be available throughout the United States through the Kalshiex derivative platform, and qualified customers will be able to bet on the results of the upcoming university basketball tournaments.

The niqab came on March 17 a month after Robenol at the request of the American Commodity Futures Trading Committee, which canceled the contracts of juveniles that allow users to bet on the results of Super Bowl, just one day after its launch.

Robinhood said in the announcement of the launch of the prediction markets before the men and women’s basketball championships, it was in contact with CFTC in recent weeks and will continue to work with the organizer.

CFTC did not immediately respond to a request for comment.

As part of its request to obtain records of Robinhood, the Galvin call office issued by the internal communications about the decision to launch the college’s sports contracts despite the previous CFTC request in February, an official said.