Three major platforms – Kalshi, Robinhood and Crypto.com – have been ordered to halt sports wagers in Connecticut. Regulators say all three operated without licences and promoted their services as legal. The Connecticut cease-and-desist action also questions how these platforms handle consumer protections.

• The state says the companies lack the required sports wagering licence and offered contracts that violate multiple local rules. Regulators added that wagers were made available to users under 21 despite state prohibitions. One official noted: “A prediction market wager is not an investment.”

• Authorities highlighted the absence of technical, integrity and data-security controls that licensed operators must follow. Without regulatory oversight, the state warned consumers risk losing funds with no avenue for recourse. The Connecticut cease-and-desist order also obliges the firms to let residents withdraw their balances.

• Regulators said the platforms offered markets on events where outcomes can be known by insiders, such as awards or trades. Connecticut prohibits such wagers as they can disadvantage regular consumers with no access to insider information. The state also cited advertising to self-excluded individuals and college students as further violations.

• Only DraftKings, FanDuel and Fanatics are authorised to offer sports wagering in Connecticut. All three targeted platforms must immediately stop advertising and offering sports event contracts to state residents. Non-compliance could lead to civil penalties or criminal action under state gaming laws.

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