The Connecticut Department of Consumer Protection (DCP) has 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 has issued cease-and-desist letters to multiple prediction markets aimed at curbing unlicensed sports betting.
- The DCP and its officials have expressed concerns over the lack of insight, as well as a host of legal violations such as a lack of advertising compliance and underage access.
- In response, Kalshi has filed a countersuit, arguing that enforcement is covered by the Commodity Exchange Act, a move they have already undertaken across other states.
Per the Wednesday release, Connecticut’s DCP has issued letters to KalshiEX LLC, Robinhood Derivatives, LLC, and Crypto.com, with specific aims at curbing sports wagering.
BREAKING: The Connecticut Department of Consumer Protection has sent cease-and-desist letters to Kalshi, Robinhood, and Crypto dot com for conducting illegal online gambling in violation of CT law. The companies have been ordered to "immediately" cease and desist such activities. pic.twitter.com/pV3Dkki0bm
— Daniel Wallach (@WALLACHLEGAL) December 3, 2025
“Only licensed entities may offer sports wagering in the state of Connecticut,” DCP commissioner Bryan T. Cafferelli said via the release. “None of these entities possess a license to offer wagering in our state, and even if they did, their contracts violate numerous other state laws and policies, including offering wagers to individuals under the age of 21.”
The prediction markets, which remain a hot topic across the board of late as several states aim to rein them in, are alleged to have violated a host of state laws, in conjunction with their lack of a sports betting operator license.
“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.”
Among the violations and risks include operating outside Connecticut’s technical standards, leaving personal and financial information potentially at risk, as well as a lack of regulatory oversight and protection, should issues such as wagers not paying out as advertised, or potential for insider knowledge.
The platforms also offer wagers to individuals under 21, and advertise to individuals on the state’s voluntary self-exclusion list and on college campuses, both of which are illegal for sportsbooks in the state.
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Kalshi fires back
As Connecticut aims to put an end to unregulated prediction markets, at least one retailer is pushing back against the cease-and-desist orders.
In response to the Connecticut DCP’s efforts, Kalshi countersued the state in federal court, alleging that state enforcement over sports event contracts is preempted by the Commodity 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 to countersue the state is in line with their continued strategy as they attempt to gain a foothold in the sports betting and prediction marketplace game. In October, similar lawsuits were filed in New York State as well as Ohio.
