Connecticut Orders Kalshi, Robinhood and Crypto.com to Stop Unlicensed Betting
Connecticut state regulators on Dec. 3, 2025 issued cease-and-desist orders to Kalshi, Robinhood and Crypto.com, alleging the platforms offered unlawful sports-event contracts to users located in the state. Regulators say the event-based contracts functioned like sports betting without the required gambling licenses, and have ordered the firms to stop offering those products to Connecticut residents.
The move underscores growing scrutiny of prediction-market and crypto-linked trading products and could force firms to geofence services, seek gaming licenses, or change product features. For users, the orders may mean immediate loss of access to certain contracts and potential restrictions on similar offerings elsewhere. The action could set a precedent for other states weighing whether such products fall under gambling laws and increase compliance costs for platforms that mix crypto, markets and event-driven bets.