Connecticut Shopper Safety has issued cease-and-desist orders to a few prediction markets for allegedly providing unlicensed on-line playing.
The Division of Shopper Safety Gaming Division ship letters with cease-and-desist notices to a few platforms conducting unlicensed on-line playing, particularly sports activities wagering: Kalshi, Robinhood, and Crypto.com. The division alleges that every of the platforms is providing sports activities betting by way of its companies with out the suitable license, placing them in breach of the legislation.
In the present day, DCP's Gaming Division issued Stop and Desist orders to a few platforms conducting unlicensed sports activities wagering.
Be taught why Prediction Market Platforms providing "Sports activities Occasions" Contracts are unlawful:https://t.co/LXLK1tRR0w
— Connecticut Division of Shopper Safety (@CTDCP) December 3, 2025
“Solely licensed entities could supply sports activities wagering within the state of Connecticut,” stated DCP Commissioner Bryan T. Cafferelli in a statement on December 3. “None of those entities possesses a license to supply wagering in our state, and even when they did, their contracts violate quite a few different state legal guidelines and insurance policies, together with providing wagers to people below the age of 21.”
Licenses are required in Connecticut as a way to enable for the mandatory client protections and laws. The division warned that the shortage of licensing leaves customers’ monetary and private info susceptible and that, because the wagers should not regulated, promised winnings should not assured.
“These platforms are deceptively promoting that their companies are authorized, however our legal guidelines are clear,” stated DCP Gaming Director Kris Gilman. “They’re additionally working outdoors of a regulatory atmosphere, posing a severe danger to shoppers who could not understand wagers positioned on these unlawful platforms supply no protections for his or her cash or info. A prediction market wager isn’t an funding.”
Prediction market or unlicensed on-line playing?
Connecticut isn’t the primary state to be asking these questions on prediction markets generally and even these platforms specifically, with Kalshi already embroiled in legal cases in Ohio and Nevada on comparable grounds, Robinhood forced to pause operations in Nevada, and Crypto.com facing similar obstacles in Nevada.
In Connecticut, all three platforms have been ordered to instantly cease all promoting, providing, selling, or in any other case working ‘sports activities occasion contracts’ or some other type of unlicensed on-line playing to state residents. All three have additionally been instructed to permit Connecticut residents to withdraw any funds at present held by the platforms.
If any of the three corporations fail to conform, this might result in civil penalties. ReadWrite has reached out to Kalshi, Crypto.com, and Robinhood for additional remark.
Featured picture: Wikimedia Commons, licensed below CC BY 4.0
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