Key Takeaways
- Connecticut ordered Robinhood, Crypto.com, and Kalshi to stop unlicensed online sports wagering.
- The platforms’ activities exposed consumers to risks due to lack of state oversight and protections.
Share this article
Connecticut has taken enforcement action against KalshiEX, Robinhood Derivatives, and Crypto.com, directing the companies to cease offering illegal sports betting products in the state.
“Only licensed entities may offer sports wagering in the state of Connecticut,” said DCP Commissioner Bryan Cafferelli in a Wednesday statement. “None of these entities possess 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.”
Officials said the platforms misled consumers, bypassed regulatory oversight, and permitted wagers that could be manipulated by insiders. The companies were told to halt operations for Connecticut residents and ensure all funds can be withdrawn.
The crackdown comes as state regulators increase enforcement against unregistered platforms that blur the line between fintech products and sportsbook wagering.
Kalshi is facing a lawsuit from users for allegedly operating as an unlicensed sports betting platform across the US and misleading customers about its market-making activities. The complaint accuses Kalshi of disguising sports bets as event contracts, a violation of federal rules distinguishing derivatives from gambling.
