The CFTC did not immediately respond to MarketWatch’s requests for comment via email and phone. But based on Robinhood’s new March Madness contracts already hitting the market, the regulator may be softening its approach. “We have been in close ...

The first weekend of the Big Dance is over, and there are just 16 teams left. Brackets have been busted, and Robinhood Markets Inc. might be busted too.

Massachusetts' top securities regulator has begun an investigation into trading platform Robinhood's decision to launch a prediction-markets hub that allows users to bet on the outcomes of a range of events,

Robinhood is under investigation from Massachusetts securities regulators over its March Madness prediction market offering.

Kalshi is striking back against New Jersey and Nevada. After recently being ordered to stop offering sports prediction markets in New Jersey and Nevada, financial exchange platform Kalshi announced lawsuits against the two states on Monday.

As Robinhood faces an investigation from Massachusetts regulators over its recently launched sports prediction markets for March Madness college basketball games, financial advisors are understanding of their wealthy clients seeking DIY (do-it-yourself) investment platforms, but request transparency across accounts.

That led New Jersey’s Department of Gaming Enforcement and the Nevada Gaming Commission to serve Kalshi to block its service within the state’s borders. That led to Robinhood blocking predictions for users in New Jersey, where this weekend’s East Regional tournament was played.

Robinhood's partnership with Kalshi, which offers betting-style futures trading has caught the attention of Massachusetts regulators, who are launching an investigation into the practice.

Massachusetts Secretary of State Bill Galvin said he was concerned Robinhood was "linking a gambling event on a popular sports event that's especially popular to young people to a brokerage account."