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Connecticut has ordered Robinhood, Crypto.com, and Kalshi to halt “unlicensed on-line playing” by way of their prediction market platforms.
The state’s Division of Client Safety (DCP) despatched letters to the three platforms on Wednesday, highlighting “sports activities wagering” contracts.
Within the letters, the DCP ordered the three corporations ”to instantly stop and desist promoting, providing, selling, or in any other case making out there Contracts or some other type of unlicensed on-line playing to Connecticut residents.”
Crypto.com, Kalshi, And Robinhood Contracts Violate State Legal guidelines, Says DCP
DCP Commissioner Bryan Cafferelli stated that neither Crypto.com, Kalshi nor Robinhood had the required licenses to supply their prediction markets in Connecticut.
He added that even when they did, “their contracts violate quite a few different state legal guidelines and insurance policies,” which Cafferelli stated embody permitting people beneath the age of 21 to put bets on occasions.
In the meantime, DCP Gaming Director Kris Gilman has accused the platforms of “deceptively promoting that their companies are authorized.”
Gilman added that every one three platforms at present function exterior of the state’s regulatory setting and pose “a critical danger to customers who might not notice that wagers positioned on these unlawful platforms provide no protections for his or her cash or info.”
The company additionally claimed that the three platforms at present lack integrity controls that will forestall insider betting or manipulation. It claimed as well as that the platforms promote to self-destructed gamblers and on-college campuses whereas allowing betting on occasions with no identified outcomes, which they consider provides insiders unfair benefits.
The authorized scrutiny comes amid heightened exercise on prediction markets platforms.
Prediction markets volumes (Supply: Token Terminal)
Robinhood And Kalshi Reply
A spokesperson for Kalshi stated its platform is “a regulated, nationwide trade for real-world occasions, and it’s topic to unique federal jurisdiction.”
Kalshi too filed a grievance towards the state regulator, and claimed that “Connecticut’s try to control Kalshi intrudes upon the federal regulatory framework that Congress established for regulating derivatives on designated exchanges.”
A Robinhood spokesperson stated in a press release that “Robinhood’s occasion contracts are federally regulated by the CFTC and provided by Robinhood Derivatives, LLC, a CFTC-registered entity.”
Crypto.com has but to remark.
DCP Notices Come Simply As Polymarket Re-Enters The US Market
The DCP’s cease-and-decist letters come simply as Polymarket has re-entered the US market, with the corporate saying within the final 24 hours the launch of its US app.
Towards all odds.
Polymarket’s U.S app is now being rolled out to these on the waitlist.
We’re launching with sports activities — adopted by markets on the whole lot. pic.twitter.com/WOoVMszrqc
— Polymarket (@Polymarket) December 3, 2025
Polymarket had beforehand exited the US market as a part of a settlement settlement with the CFTC. It’s re-entering after buying the CFTC-licensed QCX for $12 million in July.
There are different regulatory threats, as evidenced by the battles that Kalshi is at present embroiled in with a number of US regulators.
Together with the current motion taken by Connecticut, two neighbouring states have beforehand taken motion.
New York despatched a cease-and-desist discover to Kalshi in October, whereas the Massachusetts state lawyer normal sued Kalshi within the state courtroom a month earlier.
Kalshi has additionally obtained related orders from Arizona, Illinois, Montana and Ohio this yr. It stays in ongoing litigation in New Jersey, Maryland and Nevada.
Regardless of the regulatory challenges, Kalshi introduced this week that it has closed a $1 billion funding spherical at a valuation of $11 billion. Kalshi and Polymarket have additionally introduced a sequence of partnerships with main companies together with the NHL, Google, and the UFC.
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