04.12.2025 17:11

Based on information from various internet sources, Connecticut's Department of Consumer Protection has taken decisive action against Robinhood, Crypto.com, and Kalshi, issuing cease-and-desist orders that mandate the cessation of their operations within the state. The directive specifically targets the offering of "sports event contracts" to Connecticut residents, compelling the platforms to enable local users to withdraw their funds promptly.

The agency's Gaming Division emphasized that these platforms lack the necessary licenses to provide sports wagering in Connecticut, a prerequisite for legal operation within the state. Commissioner Bryan T. Cafferelli asserted that even with a license, the contracts offered by these entities would still contravene several state laws and policies. The state has cautioned that failure to adhere to these orders could lead to the imposition of civil penalties and even criminal prosecution under state gaming and consumer protection laws.

This regulatory crackdown intensifies the ongoing debate on whether prediction markets accessed through apps should be governed by state gambling laws or classified as derivatives subject to federal oversight. The inclusion of Robinhood and Crypto.com alongside Kalshi suggests a growing inclination among regulators to categorize outcome-based financial products offered on blockchain platforms as a form of sports betting.

In response, Kalshi maintains that it operates as a regulated, nationwide exchange for real-world events under exclusive federal jurisdiction. A company spokesperson highlighted the distinct nature of Kalshi's services compared to traditional state-regulated sportsbooks and casinos, adding that legal action has been initiated in federal court to challenge the state's position.