The state of Connecticut issues cease and desist orders to Robinhood, Kalshi, and Crypto.com for offering unlicensed sports betting through event contracts. The platforms are accused of conducting unlicensed online gambling, violating state laws and policies. Prediction markets have seen increased scrutiny in the US as they attract billions in investments.

Kalshi responds by claiming to be a regulated nationwide exchange under exclusive federal jurisdiction. The platform files a complaint against Connecticut’s attempt to regulate it, stating it intrudes upon federal regulatory frameworks for derivatives on designated exchanges. Crypto.com and Robinhood have not commented on the issue.

Connecticut’s Department of Consumer Protection warns about the risks prediction market platforms pose to consumers due to lack of security protections and regulatory oversight. Only DraftKings, FanDuel, and Fanatics are legally licensed for sports wagering in the state. Platforms like Kalshi have faced legal challenges in at least ten US states.

Kalshi has been issued cease and desist orders in several states and faces ongoing litigation in others. Despite the legal challenges, the platform recently closed a $1 billion funding round at an $11 billion valuation after a record month in November. Crypto gaming’s mainstream moment may depend on regulatory clarity.

Read more at Coin Telegraph: Connecticut Orders Robinhood, Crypto.com, Kalshi Stop Event Contracts