Connecticut orders Kalshi, Robinhood, and Crypto.com to cease sports betting operations

According to CoinDesk, Connecticut has launched a legal offensive in the sports betting contract space, issuing cease-and-desist notices on Wednesday to three major prediction market operators—Robinhood, Kalshi, and Crypto.com. The state's consumer protection department accused these companies of engaging in "unlicensed sports betting."

According to the state government's notice, these companies are "hereby ordered to immediately cease and desist from advertising, offering, promoting, or in any way providing contracts or other forms of unlicensed online gambling to residents of Connecticut."

Robinhood argued on Wednesday that the company is regulated by the federal government of the United States.