Connecticut Issues Cease-and-Desist Orders to Major Prediction Markets
- Connecticut’s Department of Consumer Protection issued cease-and-desist orders to Robinhood, Kalshi, and Crypto.com for unlicensed online gambling.
- The companies are accused of offering sports wagering without state licenses, violating local laws including age restrictions.
- Robinhood claims its operations are federally regulated by the CFTC, while Kalshi has filed a lawsuit against New York over similar issues.
- Connecticut identified Draft Kings, FanDuel, and Fanatics as licensed operators for sports wagering in the state.
- Failure to comply with the cease-and-desist orders could lead to civil or criminal penalties for the involved companies.
The cease-and-desist orders highlight ongoing regulatory tensions between state authorities and federally regulated platforms like Kalshi and Crypto.com. Similar legal disputes are occurring in neighboring states as regulators seek to enforce local gambling laws.
As Connecticut moves against these firms, it underscores the complexities of navigating federal versus state regulations in the gambling sector, particularly with no licenses held by these entities for offering wagers in Connecticut.(Source)
