Connecticut Halts Unlicensed Online Gambling by Kalshi, Robinhood, and Crypto.com
- Connecticut ordered Kalshi, Robinhood, and Crypto.com to cease unlicensed online gambling operations.
- A group of 16 tribes argued that prediction markets violate the Indian Gaming Regulatory Act by operating on tribal lands.
- The prediction market industry has grown to $6 billion in weekly volume, with Kalshi valued at $11 billion.
- Kalshi sued the Connecticut Department of Consumer Protection over threats of criminal and civil penalties for offering event contracts.
Connecticut’s cease-and-desist orders target unlicensed gambling activities by major players like Kalshi, Robinhood, and Crypto.com, following tribal claims against prediction markets on their lands. The dispute highlights tensions between state regulations and tribal sovereignty under the Indian Gaming Regulatory Act.
Kalshi’s valuation soared to $11 billion amid legal challenges from tribes accusing it of diverting casino revenues. The case underscores the growing friction in the booming $6 billion weekly prediction market industry. Source
