Robinhood has come under the scrutiny of Massachusetts regulators following the launch of its prediction market, leading to a subpoena.
Launch of Robinhood's Prediction Market
This week, Robinhood launched a prediction market. Experts see the platform as a strong competitor to Polymarket, one of the most popular decentralized prediction markets.
Regulatory Challenges
Massachusetts regulators have concerns about Robinhood's marketing strategies. Bill Galvin stated that the company blurs the line between investing and gambling. "This is just another gimmick from a company that’s very good at gimmicks to lure investors away from sound investing," he said.
Robinhood's Stock Market
Robinhood's stock (Nasdaq: HOOD) saw an increase on the trading floor. At the time of publication, the stock price reached $48.38, up 9.02% in the last session, though there was a slight decline observed before the market opened on March 25, 2025.
The investigation focuses on Robinhood's marketing strategies and the involvement of youth in betting through the platform.
