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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 obtainable Contracts or another 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 mentioned 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 mentioned embody permitting people below the age of 21 to position 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 the moment function outdoors of the state’s regulatory atmosphere and pose “a critical threat to customers who could not notice that wagers positioned on these unlawful platforms supply no protections for his or her cash or data.”
The company additionally claimed that the three platforms at the moment lack integrity controls that will stop 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 recognized outcomes, which they imagine 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 mentioned its platform is “a regulated, nationwide trade for real-world occasions, and it’s topic to unique federal jurisdiction.”
Kalshi additionally filed a grievance in opposition to the state regulator, and claimed that “Connecticut’s try to manage Kalshi intrudes upon the federal regulatory framework that Congress established for regulating derivatives on designated exchanges.”
A Robinhood spokesperson mentioned in an announcement that “Robinhood’s occasion contracts are federally regulated by the CFTC and provided via 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.
In opposition to 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 every little thing. 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 the moment 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 common sued Kalshi within the state court docket 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 collection of partnerships with main corporations together with the NHL, Google, and the UFC.
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