3 predictions platforms ordered to cease operations in Connecticut
Cease-and-desist orders have been sent to KalshiEX, Robinhood and Crypto.com.
US.- The Connecticut Department of Consumer Protection (DCP) Gaming Division has issued cease-and-desist orders to KalshiEX, Robinhood Derivatives and Crypto.com. It has ordered them to immediately cease and desist offering sports event contracts to residents
The letters state that failure to comply may result in civil penalties under the Connecticut Unfair Trade Practices Act and/or criminal penalties for violations of Connecticut’s gaming statutes. The DCP stated that prediction market platforms offering sports events contracts are illegal in the state and put consumers money and information at risk.
DCP commissioner Bryan T. Cafferelli said: “Only licensed entities may offer sports wagering in the state of Connecticut. None of these entities possess a license to offer wagering in our state, and even if they did, their contracts violate numerous other state laws and policies, including offering wagers to individuals under the age of 21.”
DCP Gaming Director Kris Gilman added: “These platforms are deceptively advertising that their services are legal, but our laws are clear. They are also operating outside of a regulatory environment, posing a serious risk to consumers who may not realize wagers placed on these illegal platforms offer no protections for their money or information. A prediction market wager is not an investment.”
Three gaming platforms licensed to offer sports wagering in Connecticut: DraftKings (Foxwoods), FanDuel (Mohegan Sun) and Fanatics (Connecticut Lottery).
