Connecticut targets Kalshi, Robinhood, and Crypto.com for offering illegal sports wagers

Connecticut's Department of Consumer Protection (DCP) has taken enforcement action against KalshiEX, Robinhood Derivatives, and Crypto.com, ordering them to cease offering illegal sports betting products within the state. DCP Commissioner Bryan Cafferelli stated that only licensed entities can offer sports wagering, and these companies lack the necessary license while also violating laws by accepting wagers from individuals under 21. Officials warned that these platforms exposed consumers to financial risks by bypassing regulatory oversight, allowing potentially manipulated wagers, and lacking state consumer protections. The companies were instructed to halt operations for Connecticut residents and ensure all user funds are withdrawable. This action is part of a broader regulatory effort against unregistered platforms that mix fintech products with sportsbook wagering, with Kalshi also facing a separate lawsuit for allegedly disguising sports bets as event contracts.

(Source：Crypto Briefing)