Massachusetts subpoenas Robinhood over college sports betting, Reuters says

Massachusetts has launched an investigation into Robinhood’s (HOOD) decision to launch a prediction-markets hub that allows users to bet on the outcomes of a range of events, including March Madness college basketball tournaments, Nate Raymond of Reuters reports. Massachusetts Secretary of State Bill Galvin said in an interview with Reuters that he is concerned Robinhood was “linking a gambling event on a popular sports event that’s especially popular to young people to a brokerage account.” Galvin added, “This is just another gimmick from a company that’s very good at gimmicks to lure investors away from sound investing.” Galvin’s office sent Robinhood a subpoena last week seeking information related to how many of its brokerage account users in the state have requested to trade college sports events contracts, an official told Reuters.