Massachusetts Sees Notable Rise in Reported Gambling Figures

Massachusetts residents are disclosing significantly higher gambling-related figures, according to recent disclosures from the state’s Department of Revenue. The financial details, while not capturing total betting activity, reveal substantial growth in the amounts individuals are reporting as gambling wins and losses.

State data indicates a notable jump in gambling wins — excluding those from the Massachusetts State Lottery — which surged from $243 million in 2020 to $638 million by 2023. This represents a 163 percent increase over the three-year span. Reported gambling losses climbed even more dramatically, rising nearly 258 percent in the same period. In 2020, residents declared $64 million in gambling losses; by 2023, that figure had reached $231 million.

As for lottery winnings, which are recorded separately, the increase was more modest. Reported winnings from the state lottery rose five percent, from $484 million in 2020 to $509 million in 2023.

These figures, collected from individual tax filings, do not provide a complete picture of total gambling expenditures or earnings. However, they offer a glimpse into the scale of gambling-related activity and suggest a growing presence of gambling in residents’ financial lives.

Robinhood’s Prediction Markets Under State-Level Investigation

While gambling activity continues to increase across Massachusetts, securities regulators in the state have launched an inquiry into Robinhood’s newest feature — prediction markets. These markets, introduced earlier this year, allow s to place bets on outcomes of real-world events, such as NCAA basketball tournaments.

The investigation, initiated by Secretary of State Bill Galvin, centers on whether Robinhood’s new contracts are encroaching upon gambling territory, potentially crossing regulatory boundaries. Last week, Galvin’s office issued a subpoena demanding information regarding the number of Massachusetts s who have engaged in these markets, specifically in connection with college sports. The subpoena also seeks internal documents and promotional content related to the rollout of the product.

Event contracts, such as those offered on Robinhood, let individuals speculate on outcomes related to sports, politics, or even economic events. Proponents argue these instruments reflect public opinion and market sentiment, while detractors say they resemble gambling platforms and raise questions about regulatory oversight.

Galvin, a long-time advocate for stronger securities regulation, expressed his concerns bluntly. “This is just another gimmick from a company that’s very good at gimmicks to lure investors away from sound investing,” he told Reuters. His concern centers around the blending of investment and speculative betting, particularly when aimed at younger s who might already hold brokerage s.

Robinhood Defends Its Strategy, Citing Regulatory Compliance

In response to the state’s probe, Robinhood defended the legality and structure of its new offering. A company spokesperson noted that these event contracts are regulated by the U.S. Commodity Futures Trading Commission (CFTC) and are made available via KalshiEX, a federally ed derivatives exchange.

“Prediction markets have become increasingly relevant for retail and institutional investors alike, and we’re proud to be one of the first platforms to offer these products to retail customers in a safe and regulated manner,” the spokesperson said.

Robinhood had previously withdrawn its application to offer Super Bowl-related bets earlier in 2024 after a request from the CFTC. Despite this, the platform continued to develop its event contracts offering, raising questions about the regulatory distinctions between federally approved instruments and state-level gambling laws.

Industry Reactions and the Debate Over Regulation

Robinhood’s latest move highlights an ongoing conversation about the nature of prediction markets. The product’s legality and oversight differ depending on jurisdiction and interpretation, with some regulators arguing it’s a form of regulated financial speculation, while others warn it mimics gambling without adhering to the same regulatory framework.

Concerns also extend to the fairness of competition. Traditional sportsbooks, which pay state licensing fees and adhere to stringent gambling regulations, may face an uneven playing field if prediction markets are allowed to operate under more lenient financial rules.

Kalshi, the exchange through which Robinhood is offering these contracts, has responded to regulatory concerns by implementing enhanced safeguards. CEO Tarek Mansour announced that the company had teamed up with IC360 to incorporate responsible gaming mechanisms, including caps on deposits and options for voluntary self-exclusion.

Robinhood, meanwhile, is no stranger to state-level investigations. In 2024, it reached a $7.5 million settlement with Massachusetts over allegations tied to its marketing tactics and a previous data security lapse. The current inquiry adds to a growing list of regulatory hurdles as the company seeks to expand into new financial products.

Source:

‘’Massachusetts tax data reveals growing gambling wins, and losses’’, wcvb.com, April 15, 2025.