Robinhood may circumvent state ban on Boston College football wagers
Massachusetts residents may soon be able to place bets on the Boston College football team via the Robinhood app, despite a state-wide ban on in-state college team betting.
Through a partnership with New York-based prediction market Kalshi, Robinhood is able to launch its new NFL event contracts, which are regulated by the Commodity Futures Trading Commission.
Unlike traditional bookmakers, prediction markets let customers buy and sell contracts that pay if an event occurs or expire if it does not. This allows Robinhood to avoid state regulations.
A Robinhood spokesperson said, “Customers in Massachusetts will be able to access prediction markets for supported in-state colleges. The event contracts offered by Robinhood Derivatives are regulated by the CFTC and offered through CFTC-registered entities.”
Mobile sports betting was legalized in Massachusetts in 2023, but additional rules enforced by the Massachusetts Gaming Commission still prohibit bets on local college teams.
FanDuel was fined US$10,000 last year for taking wagers on a Boston College basketball game.
The Massachusetts Gaming Commission confirmed that prediction markets are under the Commodity Futures Trading Commission’s oversight. One of its spokespeople said, “The Commission is monitoring CFTC action and prediction markets in general.”
Meanwhile, Secretary of State and Massachusetts Chief Regulator of Securities Markets, William Galvin, has opened an investigation into Robinhood’s sports wagering contracts.
Dig deeper
2025/02/05: Robinhood rolls back Pro Football Championship Market after regulator steps in
2025/03/18: Robinhood launches prediction market in time for March Madness
2025/04/23: Prediction markets platform Kalshi files lawsuit in Maryland
2025/05/20: Judge commits to move quickly on Kalshi Nevada judgment
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
