Connecticut Enforces Ban on Unlicensed Online Gambling by Major Platforms
By: Eva Baxter
In a significant move to uphold state gambling regulations, Connecticut has sent cease and desist letters to major platforms Robinhood, Crypto.com, and Kalshi. The action taken by the Connecticut Department of Consumer Protection (DCP) highlights concerns about the offering of unlicensed sports betting through event contracts on these platforms. The DCP has emphasized that such activities fall under unlicensed online gambling, particularly focusing on sports wagering, which the platforms allegedly provided without appropriate permits.
The DCP's directive comes after it identified these platforms conducting gambling activities that are illegal in the state. Both Robinhood and Crypto.com are renowned platforms for their diverse financial services, including securities trading and cryptocurrency exchanges, while Kalshi has been known for offering prediction markets. However, according to the state's gambling regulations, any form of sports wagering requires a formal license which none of these entities reportedly hold. Furthermore, the DCP highlighted the platforms’ failure to comply with state laws prohibiting wagers by individuals under the age of 21.
DCP Commissioner Bryan Cafferelli remarked that the enforcement is crucial to ensuring consumer protection and maintaining regulatory compliance within state boundaries. The use of event contracts as a form of betting underscores a grey area that many online platforms have ventured into, thus attracting regulatory scrutiny. It was noted that even if these platforms had acquired licenses, the nature of the contracts would still contravene state policies, pointing to broader regulatory challenges in overseeing such digital platforms in the dynamic landscape of online finance and gambling.
Connecticut’s crackdown reflects a growing vigilance among state authorities to clamp down on unlicensed gambling operations and enforce stringent age-related laws. This development marks another chapter in the ongoing dialogue about regulating the burgeoning online gambling sector, which has been further popularized by the rise of cryptocurrencies and digital trading platforms. [Read more from the Connecticut Department of Consumer Protection](https://portal.ct.gov/dcp/news-releases-from-the-department-of-consumer-protection/2025-news-releases/connecticut-consumer-protection-orders-cease-and-desist-conducting-unlicensed-online-gambling?language=en_US).
