Connecticut Cracks Down on Sports Prediction Markets, Suspending Major Players

Connecticut has taken a decisive stance against the burgeoning prediction market industry. The state’s Department of Consumer Protection (DCP) has issued cease-and-desist orders to Kalshi, Robinhood, and Crypto.com, demanding an immediate halt to their sports-related contract offerings for Connecticut residents.

The State Seeks Clarity on Legality

This action stems from Connecticut’s classification of these contracts as online gambling, a practice that requires licenses under state wagering laws. Officials argue the three companies have bypassed necessary regulatory requirements by offering these contracts without obtaining the required state permits.