The Connecticut Department of Consumer Protection (DCP) Gaming Division has issued cease‑and‑desist orders to three platforms—KalshiEX LLC, Robinhood Derivatives, LLC, and Crypto.com—for conducting unlicensed online gambling, specifically sports wagering.
“Only licensed entities may offer sports wagering in the state of Connecticut,” said DCP Commissioner Bryan T. Cafferelli. “None of these entities hold a license, and even if they did, their contracts violate multiple state laws and policies, including offering wagers to individuals under 21.”
DCP Gaming Director Kris Gilman added:
“These platforms are deceptively advertising that their services are legal. They operate outside of a regulated environment, exposing consumers to serious risks. A prediction market wager is not an investment.”
Key Consumer Risks Identified
- No adherence to Connecticut’s technical standards, leaving financial and personal data vulnerable.
- Lack of integrity controls, allowing insiders to wager or influence outcomes.
- Unregulated house rules, meaning winnings may not be honored.
- No recourse for consumers if wagers fail to pay out.
- Wagers offered on events with known outcomes (e.g., award shows, trades), which are prohibited as unfair.
- Illegal advertising to individuals on the Voluntary Self‑Exclusion List and on college campuses.
- Wagers offered to individuals under 21.
Enforcement Actions
All three platforms must immediately cease advertising, offering, or promoting sports event contracts or any other form of unlicensed gambling to Connecticut residents. They are also required to allow residents to withdraw any funds currently held.
Failure to comply may result in civil penalties under the Connecticut Unfair Trade Practices Act and/or criminal charges for violations of state gaming statutes.
Licensed Operators
In Connecticut, only three platforms are authorized to offer sports wagering:
- DraftKings (Foxwoods)
- FanDuel (Mohegan Sun)
- Fanatics (Connecticut Lottery)
Participants must be 21 or older to engage in sports wagering, whether online or in person. For fantasy contests, the minimum age is 18.
