Connecticut Regulators Crack Down on Unlicensed Crypto Prediction Markets

Connecticut’s Department of Consumer Protection has ordered Kalshi, Robinhood, and Crypto.com to cease offering unlicensed prediction market products, which regulators equate to illegal sports gambling. The state’s Gaming Division issued cease-and-desist letters, citing violations of Connecticut’s wagering laws.

Commissioner Bryan T. Cafferelli emphasized that only licensed entities may offer sports betting in the state. None of the targeted firms hold such licenses, and their products allegedly circumvent age restrictions prohibiting under-21 participation.

The action highlights growing regulatory scrutiny of crypto-adjacent prediction markets, particularly those marketed as investment vehicles rather than gambling platforms. Connecticut joins other states in challenging the legal gray area surrounding these products.