On December 3, a legal notice from the Connecticut Department of Consumer Protection’s Gaming Division ordered three crypto platforms, KalshiEX LLC, Robinhood Derivatives, LLC, and Crypto.com
$3.56B
, to stop offering sports-related event contracts in the state of Connecticut.
These “cease-and-desist” letters apply to any unlicensed online gambling and specifically target prediction markets that resemble sports betting.
The firms must also enable all residents to withdraw funds currently held on their platforms.
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The state agency emphasized that only recognized operators, such as DraftKings (Foxwoods), FanDuel (Mohegan Sun), or Fanatics (Connecticut Lottery), are legally allowed to facilitate sports betting within the state.
Additionally, those uses must adhere to rules like minimum age limits: 21 for sports wagering and 18 for fantasy contests.
The notice warned that users lack the regulatory protections that licensed platforms must provide. As a result, personal data and money might be exposed to risk, with no assurance of accurate payouts or dispute resolution.
Connecticut regulators also argued that many event outcomes, such as award shows or athlete trades, are already known to insiders, which creates an unfair advantage for some participants.
Regulatory officials highlighted that promoting these markets on college campuses or advertising to those on Connecticut’s self-exclusion list is a violation of state rules.
The letter made clear the consequences of noncompliance: companies might face civil penalties under the state’s unfair trade practices laws or even criminal liability under gaming statutes.
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