{"id":56683,"date":"2025-12-04T12:41:32","date_gmt":"2025-12-04T05:41:32","guid":{"rendered":"https:\/\/hbbgroup.net\/connecticut-orders-robinhood-crypto-com-kalshi-to-stop-prediction-markets\/"},"modified":"2025-12-04T12:41:32","modified_gmt":"2025-12-04T05:41:32","slug":"connecticut-orders-robinhood-crypto-com-kalshi-to-stop-prediction-markets","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/vi\/connecticut-orders-robinhood-crypto-com-kalshi-to-stop-prediction-markets\/","title":{"rendered":"Connecticut orders Robinhood, Crypto.com, Kalshi to stop prediction markets"},"content":{"rendered":"
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The US state of Connecticut has hit Robinhood, Kalshi and Crypto.com with cease and desist orders, accusing the platforms of offering unlicensed sports betting through event contracts.<\/p>\n

The Connecticut Department of Consumer Protection sent<\/a> letters to the three platforms on Wednesday, claiming they were \u201cconducting unlicensed online gambling, more specifically sports wagering,\u201d with event contracts available online.<\/p>\n

\u201cNone of these entities possess a license to offer wagering in our state, and even if they did, their contracts violate numerous other state laws and policies, including offering wagers to individuals under the age of 21,\u201d said DCP Commissioner Bryan Cafferelli.<\/p>\n

DCP Gaming Director Kris Gilman accused the platforms of \u201cdeceptively advertising that their services are legal,\u201d adding that they operate outside of the state\u2019s regulatory environment, \u201cposing a serious risk to consumers who may not realize that wagers placed on these illegal platforms offer no protections for their money or information.\u201d<\/p>\n

Prediction markets have come under legal scrutiny in several US states, as the use of these platforms has skyrocketed<\/a> this year and attracted billions of dollars in investment for allowing users to bet on the outcome of a variety of events.<\/p>\n

Prediction markets saw huge volumes in November. Source: <\/em>Token Terminal<\/em><\/a>\u00a0<\/em><\/figcaption><\/figure>\n

Kalshi fires back in court<\/h2>\n

A Kalshi spokesperson told Cointelegraph that it is \u201ca regulated, nationwide exchange for real-world events, and it is subject to exclusive federal jurisdiction.<\/p>\n

\u201cIt\u2019s very different from what state-regulated sportsbooks and casinos offer their customers. We are confident in our legal arguments and have filed suit in federal court,\u201d Kalshi added.<\/p>\n

In a complaint filed<\/a> on Wednesday against the DCP, Kalshi claimed that \u201cConnecticut\u2019s attempt to regulate Kalshi intrudes upon the federal regulatory framework that Congress established for regulating derivatives on designated exchanges.\u201d<\/p>\n

It added that its platform was subject to the Commodity Futures Trading Commission\u2019s \u201cexclusive jurisdiction\u201d and its sports event contracts \u201care lawful under federal law.\u201d<\/p>\n

\u201cAs we\u2019ve previously shared, Robinhood\u2019s event contracts are federally regulated by the CFTC and offered through Robinhood Derivatives, LLC, a CFTC-registered entity, allowing retail customers to access prediction markets in a safe, compliant, and regulated manner,\u201d a Robinhood spokesperson told Cointelegraph. <\/p>\n

Crypto.com did not immediately respond to requests for comment.<\/p>\n

In its statement, Connecticut\u2019s DCP said that prediction market<\/a> platforms pose serious risks to consumers because they lack the required technical standards and security protections for financial and personal data.<\/p>\n

Source: <\/em>Connecticut Department of Consumer Protection<\/em><\/a><\/figcaption><\/figure>\n

The agency claimed that such platforms also lack integrity controls to prevent insider betting or manipulation, operate without regulatory oversight of their payout rules, advertise to self-excluded gamblers and on college campuses, and permit betting on events with known outcomes, thereby giving insiders unfair advantages.<\/p>\n

Related: <\/strong><\/em>Polymarket opens US app to waitlisted users after CFTC green light<\/strong><\/em><\/a><\/p>\n

Only three platforms are legally licensed for sports wagering in Connecticut: DraftKings, FanDuel and Fanatics, all of which require users to be at least 21 years old.<\/p>\n

Kalshi under fire in at least 10 US states<\/h2>\n

Connecticut is not the only state to take a hard stance on prediction platforms; regulators in two neighboring states have previously taken action.\u00a0<\/p>\n

New York sent a cease and desist to Kalshi in late October, and the company responded on Oct. 27 by suing the state<\/a>. Meanwhile, the Massachusetts state attorney general sued Kalshi in the state court in September.\u00a0<\/p>\n