Connecticut Consumer Protection has issued cease-and-desist orders to three prediction markets for allegedly offering unlicensed online gambling.
The Department of Consumer Protection Gaming Division send letters with cease-and-desist notices to three platforms conducting unlicensed online gambling, specifically sports wagering: Kalshi, Robinhood, and Crypto.com. The department alleges that each of the platforms is offering sports betting through its services without the appropriate license, putting them in breach of the law.
Today, DCP's Gaming Division issued Cease and Desist orders to three platforms conducting unlicensed sports wagering.
Learn why Prediction Market Platforms offering "Sports Events" Contracts are illegal:https://t.co/LXLK1tRR0w
— Connecticut Department of Consumer Protection (@CTDCP) December 3, 2025
“Only licensed entities may offer sports wagering in the state of Connecticut,” said DCP Commissioner Bryan T. Cafferelli in a statement on December 3. “None of these entities possesses 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.”
Licenses are required in Connecticut in order to allow for the necessary consumer protections and regulations. The department warned that the lack of licensing leaves users’ financial and personal information vulnerable and that, as the wagers are not regulated, promised winnings are not guaranteed.
“These platforms are deceptively advertising that their services are legal, but our laws are clear,” said DCP Gaming Director Kris Gilman. “They are also operating outside of a regulatory environment, posing a serious risk to consumers who may not realize wagers placed on these illegal platforms offer no protections for their money or information. A prediction market wager is not an investment.”
Prediction market or unlicensed online gambling?
Connecticut is not the first state to be asking these questions about prediction markets in general and even these platforms in particular, with Kalshi already embroiled in legal cases in Ohio and Nevada on similar 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 immediately stop all advertising, offering, promoting, or otherwise operating ‘sports event contracts’ or any other form of unlicensed online gambling to state residents. All three have also been told to allow Connecticut residents to withdraw any funds currently held by the platforms.
If any of the three companies fail to comply, this could lead to civil penalties. ReadWrite has reached out to Kalshi, Crypto.com, and Robinhood for further comment.
Featured image: Wikimedia Commons, licensed under CC BY 4.0
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