BOSTON (Reuters) – Online brokerage Robinhood on Thursday agreed to pay a $7.5 million fine and overhaul its practices to resolve allegations by Massachusetts’ securities regulators that it encouraged inexperienced investors to place risky trades.

Massachusetts Secretary of State Bill Galvin said the settlement resolved an administrative enforcement action he filed in 2020 over what he said was Robinhood’s “gamification” of trading to encourage user engagement on its platform.

(Reporting by Nate Raymond in Boston)

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