Connecticut Issues Cease-and-Desist to Platforms Over Prediction Markets

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The state of Connecticut has directed three prominent platforms to halt their prediction market offerings. The state’s Department of Consumer Protection issued cease and desist orders to Robinhood, Crypto.com, and Kalshi this week.

The letters from the DCP allege these companies are offering unlicensed sports betting through “event contracts.” Authorities stated these activities constitute online gambling, specifically sports wagering, which requires a state license.

Commissioner Bryan Cafferelli emphasized that none of the entities hold a wagering license in Connecticut. He further noted that even with a license, their contracts would violate state laws, such as those prohibiting wagers from individuals under 21 years of age.

DCP Gaming Director Kris Gilman accused the platforms of deceptive advertising regarding the legality of their services. He warned that operating outside the regulated environment poses serious consumer risks, including a lack of protection for users’ funds and personal information.

This action reflects growing legal scrutiny of prediction markets across the US. The use of these platforms has surged recently, attracting significant investment as users place bets on diverse event outcomes.