Connecticut Orders Kalshi and Others to Cease Unlicensed Sports Betting

The state of Connecticut has ordered Kalshi, a prediction market platform, to stop offering unlicensed sports betting through event contracts. Similar orders were issued to Robinhood and Crypto.com.

Key Points:

Connecticut's Department of Consumer Protection (DCP) claims these platforms conduct unlicensed online gambling, including sports wagering, without proper licensing.
DCP Commissioner Bryan Cafferelli highlighted that the platforms violate state laws by offering wagers to individuals under 21.
DCP Gaming Director Kris Gilman criticized the platforms for misleading advertisements, suggesting users are at risk due to lack of protection for funds and personal information.
Kalshi, despite legal challenges, maintains it operates as a regulated exchange under the Commodity Futures Trading Commission (CFTC) jurisdiction, distinct from state-regulated sportsbooks.
Kalshi has filed a lawsuit in federal court against Connecticut's actions, arguing they interfere with federal regulatory frameworks.

Kalshi is also facing scrutiny from other US states like New York and Massachusetts, both issuing cease and desist orders earlier this year. Meanwhile, CNN has partnered with Kalshi for using its real-time data.