Massachusetts has launched a review to investigate Robinhood’s prediction markets, which allows users to bet on the results of events such as basketball tournaments, users.

According to Reuters on March 24, Massachusetts State Secretary Bill Galvin said that his office was sent to Robinhood last week to Robinhood, marketing materials and users in Massachusetts to learn the number of sports activities in college tournaments.

Galvin said that the trading platform is concerned that “a popular sports activity is a particularly common gambling activity with a tool to calculate an intermediary.

“This is nothing more than any other number of a company that makes tricks very good to remove investors from solid investments,” he added.

On March 17, Robinhood launched an estimated markets center that could be accessed via the prediction platform Kalshi, which initially organized by the Commodity Futures Trade Commission (CFTC), and will include activity contracts of colleges and the federal fund ratio in May.

A Robinhood spokesman said that the event contracts were “organized by CFTC and offered to CFTC through organizations registered”.

“Estimation markets have become increasingly more and more important for retail and corporate investors, and we are proud to be one of the first platforms to offer these products to retail customers in a safe and regulated way, Söz said the spokesman.

Robinhood Markets (HOOD) stock price was close to $ 48.36 after a more than 9 %increase during the day after the trade of trade on March 24th. CFTC and Galvin’s office did not respond immediately to comments requests.

Activity contracts allows users to bet on the outcome of everything, from sports competitions to election results and crypto money prices. These contracts have been popularized by the Blockchain -based forecasting market Polymarket and its decentralized rival Kalshi and reacted to some regulators.

Last month, Robinhood canceled the day after the CFTC request, the next day of the starting activity contracts for the Super Cup betting.

The Massachusetts investigation also asked Robinhood to deliver internal communications for the initiation of basketball activity contracts of the colleges launched after CFTC’s request to stop the Super Cup contracts.

CFTC also asked Kalshi and Crypto.com to explain how both companies are compatible with the derivative regulations of the Super Cup event contracts.