Connecticut issues cease-and-desist to Kalshi, Robinhood, and Crypto.com over ‘illegal sports wagering’

Connecticut’s Department of Consumer Protection issued cease and desist orders to Kalshi, Robinhood, and Crypto.com for offering unlicensed online gambling, specifically “sports event contracts” considered illegal sports wagering. Commissioner Bryan T. Cafferelli stated that only licensed entities can offer such wagering in the state and that these platforms violated multiple laws, including accepting wagers from those under 21. The companies are required to stop advertising and allow Connecticut residents to withdraw funds. Regulators cited risks like data protection concerns and the potential for insider betting. Non-compliance may lead to civil or criminal penalties. While platforms like Kalshi and Polymarket have received federal approval, their legality remains debated, and Kalshi has faced similar actions in other states, arguing federal oversight applies.

(Source：The Block)