Connecticut Issues Cease-and-Desist to Crypto.com, Robinhood, and Kalshi Over Unlicensed Sports-Betting Contracts

According to CoinDesk, Connecticut’s Department of Consumer Protection issued cease-and-desist notices to three prominent prediction market operators — Robinhood, Kalshi, and Crypto.com — alleging unlicensed sports betting activity within the state. The move signals a broad interpretation of online gambling boundaries, targeting contracts that hinge on event outcomes and are sold to Connecticut residents.

The formal government notice requires these firms to immediately cease and desist from advertising, offering, promoting, or providing contracts or other forms of unlicensed online gambling to Connecticut residents. Regulators emphasize compliance with state licensing requirements and warn of potential enforcement if activity continues.

Robinhood has argued the platform operates under federal oversight, asserting it remains subject to U.S. regulatory supervision. The episode illustrates ongoing regulatory risk around cross-jurisdictional prediction markets and highlights the need for clarity in state licensing for contract-based betting products.