Connecticut’s Department of Consumer Protection (DCP) has issued cease-and-desist orders to Robinhood, Crypto.com, and Kalshi, accusing all three companies of running unlicensed online gambling services within the state.
On Wednesday, the DCP’s Gaming Division sent formal letters to KalshiEX LLC, Robinhood Derivatives LLC, and Crypto.com. The letters demanded that the companies immediately stop promoting, offering, or enabling access to “sports event contracts” or any other form of unlicensed online gambling for Connecticut residents.
DCP Commissioner Bryan T. Cafferelli emphasized that only licensed operators are permitted to offer sports wagering in Connecticut. He noted that none of the three platforms hold the required licenses and that their offerings also violate other state laws, including those that prohibit wagering by individuals under 21.
The DCP also instructed the companies to allow Connecticut users to withdraw any funds held on their platforms.
Gaming Director Kris Gilman said the companies were misleading consumers by presenting their services as legal. Gilman warned that operating outside the state’s regulatory system creates significant risks for users, who may not realize that illegal platforms provide no protections for their money or personal data.
Regulators raised multiple concerns, including the absence of technical safeguards for financial and personal information, no integrity controls to prevent insider betting, unregulated house rules, and no mechanisms for users to recover lost funds.
Authorities also noted that these platforms were advertising to individuals on the state’s Voluntary Self-Exclusion List and on college campuses—both actions prohibited under Connecticut law.
Failure to follow the cease-and-desist orders could trigger further enforcement measures, including civil penalties under the Connecticut Unfair Trade Practices Act or criminal charges for violating state gaming laws.
At present, only three operators are licensed to offer sports betting in Connecticut: DraftKings (Foxwoods), FanDuel (Mohegan Sun), and Fanatics (Connecticut Lottery).
The enforcement action adds to a growing national crackdown, as multiple states seek to halt unlicensed platforms offering online betting on sports, elections, and other events.
