Connecticut Accuses Robinhood, Crypto.com and Kalshi of Unlicensed Sports Betting Through Event Contracts
The post Connecticut Accuses Robinhood, Crypto.com and Kalshi of Unlicensed Sports Betting Through Event Contracts appeared on BitcoinEthereumNews.com.
Connecticut’s Department of Consumer Protection has issued cease and desist orders to Robinhood, Crypto.com, and Kalshi, alleging their event contracts constitute unlicensed sports betting. The platforms face accusations of operating without state licenses and violating age restrictions, raising consumer protection concerns in the growing prediction market sector. Connecticut regulators claim event contracts on these platforms equate to illegal sports wagering without proper licensing. Platforms are criticized for lacking safeguards against underage betting and insider manipulation. Prediction markets have surged, with November volumes reaching record highs according to Token Terminal data, attracting billions in investments. Discover why Connecticut issued cease and desist orders to Robinhood, Crypto.com, and Kalshi over event contracts as unlicensed sports betting. Learn the risks and legal battles shaping prediction markets today—stay informed on crypto regulations. What is the Connecticut Cease and Desist Order Against Robinhood, Crypto.com, and Kalshi? Connecticut cease and desist orders target platforms offering event contracts, which state officials view as unlicensed online gambling, specifically sports wagering. Issued by the Department of Consumer Protection on Wednesday, these directives accuse Robinhood, Crypto.com, and Kalshi of conducting illegal activities by allowing users to bet on event outcomes without state approval. None of the entities hold the necessary wagering licenses, and their operations reportedly breach multiple state laws, including prohibitions on wagers by individuals under 21. The orders highlight broader regulatory challenges in the prediction market space, where platforms enable trading on real-world events like sports results or political outcomes. As these markets have exploded in popularity, drawing significant user engagement and investment, states like Connecticut are stepping up enforcement to protect consumers from unregulated risks. Commissioner Bryan Cafferelli emphasized that even licensed operations would fail to meet state standards due to violations in age verification and other policies. Prediction markets saw huge volumes in November. Source: Token…
