Connecticut Orders Kalshi, Robinhood, Crypto.com to Cease Sports Betting

The state of Connecticut, through its Department of Consumer Protection (DCP), issued cease-and-desist orders to Robinhood, Kalshi, and Crypto.com, demanding they immediately stop offering or promoting sports events contracts, which the state deems "unlicensed online gambling" or sports wagering. DCP Commissioner Bryan T. Cafferelli stated that these entities lack the necessary licenses and that their contracts violate state laws, including allowing wagers from individuals under 21, contrasting them with licensed operators like DraftKings and FanDuel. Robinhood countered that its event contracts are federally regulated by the CFTC through Robinhood Derivatives, LLC. Both Kalshi and Crypto.com are federally regulated as designated contract markets (DCMs) by the CFTC, and Kalshi is currently engaged in a legal dispute with New York over similar regulatory authority. A recent federal ruling in Nevada suggested state regulators may have jurisdiction over some sports-based event contracts, potentially challenging the industry's federal preemption arguments.

(Source：CoinDesk)