Connecticut Orders Kalshi, Robinhood, Crypto.Com To Halt 'Unlicensed Sports Wagering'

By Bill Speros Dec 3rd, 2025 4:18 PM EST

Connecticut joined a growing list of states opposing prediction markets like Kalshi Thursday after it issued “cease-and-desist” orders to three operators offering sports event contracts in the Nutmeg State.

The Department of Consumer Protection’s Gaming Division sent letters dated Dec. 2 to KalshiEX LLC, Robinhood Derivatives and Cypto.com for “conducting unlicensed online gambling, more specifically sports wagering” in the state.

“Only licensed entities may offer sports wagering in the state of Connecticut,” said DCP Commissioner Bryan T. Cafferelli said in a statement posted Thursday the Connecticut Consumer Protection website. “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.”

The Department's announcement on the same day that Fanatics launched a prediction market in 24 states (not including Connecticut), Polymarket began making its app available to a limited number of U.S. customers, and Kalshi announced a partnership with CNN.

Platforms 'Deceptively Advertising' Legal Services

“These platforms are deceptively advertising that their services are legal, but our laws are clear,” said DCP Gaming Director Kris Gilman in the same statement. “They are also operating outside of a regulatory environment, posing a serious risk to consumers who may not realize wagers placed on these illegal platforms offer no protections for their money or information. A prediction market wager is not an investment.”

Kalshi earned an $11 billion valuation this week and Polymarket CEO Shayne Copland appeared on “60 Minutes” touting his $9 billion platform as a gateway into the future.

The prediction platforms offering sports event contracts “are illegal and put consumers money and information at risk,” the Department said.

Sports Event Contracts ‘Constitute Sports Wagering’

In the letters to each platform, Kristofer Gilman, Director of Gaming, that the sports event contracts offered by each platform “constitute sports wagering because they allow Connecticut residents to risk something of value for gain by an electronic wagering platform through the placement of wagers on the outcome of live sporting events or portions of a live sporting event including future events.”

Sports wagering in Connecticut is limited to those over 21. The legal age to trade on any of the platforms cited is 18.

The letters ordered each platform to “immediately cease and desist advertising and offering its Contracts to Connecticut residents.”

Why Connecticut Considers Sports Events Contracts Illegal?

In its statement, the Department offered the following rationale behind its move:

• There are no integrity controls in place for these platforms. That means there is nothing to prevent participants or insiders from placing wagers on events or impacting the outcome of an event. Regulated operators must have controls in place to prohibit known insiders from placing wagers, and to monitor and report suspicious wagers.
• They avoid adherance to Connecticut’s technical standards for wagering platforms, leaving your financial and personal information vulnerable.
• House rules, which govern the settlements of all wagers, did not face any regulatorary review. Wagers offered on these platforms are not regulated, which means you might not get your winnings as advertised.
• If an issue arises, such as a wager not paying out as advertised, there is no recourse for the Department of Consumer Protection to recover lost funds for consumers.
• These platforms offer wagers on events where many people, such as award shows, professional team trades, and other events, know the outcome. This means insiders with special knowledge of an event can place bets on the outcome they already know. Connecticut prohibits wagers on events with known outcomes because they are unfair to consumers without insider knowledge.
• These platforms advertise to individuals on the Voluntary Self-Exclusion List, and on college campuses, which is illegal in Connecticut.
• They offer wagers to individuals on the Voluntary Self-Exclusion List and to individuals under 21.

Connecticut Joins Other States In Legal Battles

Kalshi previously received cease-and-desist orders from Arizona, Illinois, Montana, and Ohio in 2025. It remains embroiled in continuing  litigation against New Jersey in the U.S. Court of Appeals for the Third Circuit, and against the Massachusetts Attorney General in Suffolk (Mass) Superior Court. The platform also remains entangled in litigation with regulators in Maryland and Nevada.

In November, Kalshi won a ruling to avoid geo-fencing around some tribal lands in California.

Comments

Sign In | Sign Up

Post

View more