Update: Market Chatter: Robinhood Investigated by Massachusetts Regulator Over NCAA Tournament Betting

02:48 PM EDT, 03/24/2025 (MT Newswires) -- (Updates with Robinhood's response in the third paragraph and recent share movement in the final paragraph.)

Robinhood Markets ( HOOD ) is under investigation by Massachusetts' top securities regulator for its decision to launch a prediction-markets hub allowing users to bet on a number of events, including the NCAA college basketball tournaments, Reuters reported Monday.

Massachusetts Secretary of State Bill Galvin told Reuters in an interview that his office subpoenaed Robinhood last week asking for information on the number of its brokerage account users in the state requesting to trade college sports events contracts as the college basketball tournaments started.

"The event contracts offered by Robinhood Derivatives are regulated by the CFTC and offered through CFTC-registered entities," a Robinhood spokesperson told MT Newswires via email. "Prediction markets have become increasingly relevant for retail and institutional investors alike, and we're proud to be one of the first platforms to offer these products to retail customers in a safe and regulated manner."

HOOD shares were up 8.9% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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