On Tuesday, December 3, 2025, the Connecticut Department of Consumer Protection (DCP) issued a cease‑and‑desist order that bars Robinhood Markets, Kalshi and Crypto.com from offering or promoting sports‑style prediction markets in the state. The order requires the companies to halt all related activities immediately and prohibits them from advertising or selling such contracts to Connecticut residents.
The DCP’s order defines the prohibited contracts as “sports event contracts” that allow users to bet on the outcome of sporting events. The regulator argues that these contracts constitute unlicensed sports wagering, violating Connecticut’s gambling statutes. It cites consumer‑protection concerns, including the lack of technical standards, the absence of safeguards against insider betting, and the fact that the platforms allow users as young as 18 to place wagers, while Connecticut’s minimum age for sports betting is 21.
Robinhood and Kalshi counter that their event contracts are federally regulated financial derivatives overseen by the Commodity Futures Trading Commission and therefore fall outside state gambling laws. Kalshi has already filed a lawsuit in Connecticut challenging the state’s authority, asserting that federal law governs its activities. Crypto.com, meanwhile, has announced the launch of Fanatics Markets in partnership with Fanatics, signaling its continued commitment to the prediction‑market space despite regulatory pushback.
The order is part of a broader trend of state regulators treating prediction‑market platforms as unlicensed sportsbooks. New York, Massachusetts and other states have issued similar actions, and federal courts have ruled that state gaming regulators can pursue enforcement against platforms that offer event contracts. The legal dispute centers on whether such contracts are financial derivatives or gambling, a distinction that could reshape the industry’s regulatory landscape.
Commissioner Bryan T. Cafferelli said, “Only licensed entities may offer sports wagering in Connecticut. None of these platforms possess a license, and their contracts violate state laws, including those that prohibit wagering by individuals under 21.” DCP Gaming Director Kris Gilman added, “These platforms are deceptively advertising that their services are legal, but our laws are clear. They operate outside a regulatory environment, posing a serious risk to consumers.”
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