Connecticut Wants Robinhood and Kalshi to Stop Its Prediction Market

Key Notes

• Connecticut believes that Kalshi and other players have violated state gambling laws and pose risks to consumer protection.
• Prediction markets face growing scrutiny across multiple US states, with New York and Massachusetts also taking action against Kalshi.
• The prediction market platform defended itself, arguing that it operates under the CFTC’s exclusive federal jurisdiction.

The US state of Connecticut has ordered popular predictions market platform Kalshi to halt its operations of offering unlicensed sports betting via event contracts. A similar order has been issued to other market players like Robinhood and Crypto.com.

Connecticut Aska Kalshi to Stop Sports Betting via Events Contracts

On Dec. 3, the Connecticut Department of Consumer Protection sent letters to Kalshi, Robinhood, and Crypto.com, while blaming for conducting “unlicensed online gambling, more specifically sports wagering,” via online event contracts. Explaining the State order, DCP Commissioner Bryan Cafferelli said:

“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.”

DCP Gaming Director Kris Gilman further accused the platforms for using deceptive advertisements to make their services appear legal. He added that these platforms operate outside the state’s regulatory framework and pose significant risks to consumers. Gilman noted that users must realize that these unlicensed platforms come with no protection for their funds or personal information.

Not only Connecticut, but prediction markets like Kalshi face the heat from other US states as well. These platforms have come under the scanner after attracting billions of dollars in investment in 2025.

Related article: Bitnomial to Launch First CFTC-Regulated Spot Crypto Market in US

Back in late October 2025, New York State also sent a cease and desist order to Kalshi. Similarly, in September, the Massachusetts state attorney general sued the prediction platform in a state court.

Despite the legal odds, media house CNN recently partnered with Kalshi to use the prediction market’s real-time data across its digital, TV, and social programming.

Kalshi Defends Its Market Stand Citing CFTC Jurisdiction

Defending its stand against the recent charges, prediction market platform Kalshi stated that it functions as a “regulated, nationwide exchange for real-world events”. “It’s very different from what state-regulated sportsbooks and casinos offer their customers. We are confident in our legal arguments and have filed suit in federal court,” Kalshi added.

In a filing on Dec. 4, Kalshi argued that Connecticut’s actions “intrude upon the federal regulatory framework that Congress established for regulating derivatives on designated exchanges.”

The company said its platform falls under the Commodity Futures Trading Commission’s “exclusive jurisdiction.” As a result, its sports event contracts “are lawful under federal law.”

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.