The Connecticut Department of Consumer Protection (DCP) announced a trio of cease-and-desist orders in an effort to push back against unlicensed online gambling.
Key Takeaways
- Connecticut’s Department of Consumer Protection issued cease-and-desists to multiple prediction markets.
- The DCP expressed concerns over the lack of oversight, as well as a host of legal violations such as a lack of advertising compliance and underage access.
- Kalshi countersued in response, arguing that enforcement is covered by the Commodities Exchange Act, a move they already made in other states.
Per Wednesday's release, the DCP issued letters to Kalshi, Robinhood, and Crypto.com, with a specific aim at curbing sports wagering.
In addition to operating without a sports betting license, the prediction markets are alleged to have violated numerous state laws and policies, including advertising and offering wagers to individuals under 21 years old and on the state's Voluntary Self-Exclusion List.
“These platforms are deceptively advertising that their services are legal, but our laws are clear,” said DCP gaming director Kris Gilman. “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.”
The DCP says these prediction markets operating outside Connecticut’s technical standards leaves personal and financial information potentially at risk. The lack of regulatory oversight and protection could lead to issues like winnings not paying out as advertised, or insiders potentially wagering on events or impacting an event's outcome.
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Kalshi fires back
As Connecticut aims to block prediction markets, at least one operator is pushing back against the cease-and-desist orders.
Kalshi countersued the state in federal court, alleging that state enforcement over sports event contracts is preempted by the Commodities Exchange Act (CEA).
JUST IN: Kalshi has sued the Connecticut Department of Consumer Protection in federal court alleging that state enforcement over sports event contracts is preempted by the CEA and it "intends to imminently seek an emergency temporary restraining order and preliminary injunction." pic.twitter.com/BdcoiPXP1a
— Daniel Wallach (@WALLACHLEGAL) December 3, 2025
Kalshi’s decision follows similar lawsuits it filed in New York and Ohio as it attempts to gain a foothold in the sports betting space.
