Connecticut’s Department of Consumer Protection (DCP) Gaming Division issued on Dec. 3 cease and desist orders to Robinhood Derivatives LLC, Crypto.com, and KalshiEX LLC for operating unlicensed online gambling platforms. The division said the firms offered sports wagers without authorization and must prevent Connecticut residents from accessing these products.

“Only licensed entities may offer sports wagering in the state of Connecticut,” DCP Commissioner Bryan T. Cafferelli stated, adding:

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.

“These platforms are deceptively advertising that their services are legal, but our laws are clear,” DCP Gaming Director Kris Gilman explained.

The announcement also pointed to risks linked to unregulated “sports events contracts,” including missing technical safeguards, no insider controls, unreviewed house rules, and no path for consumers to address unpaid winnings. Regulators further underscored that the platforms targeted self-excluded individuals and college campuses, which is unlawful.

Read more: Robinhood Debuts Social Trading App With Live Crypto, Stocks, Options Integration

“All three platforms are ordered to immediately cease and desist advertising, offering, promoting, or otherwise making available ‘sports event contracts’ or any other form of unlicensed online gambling to Connecticut residents,” the announcement notes, adding:

DCP also ordered all three platforms to allow Connecticut residents to withdraw any funds currently held by the platforms.

Officials cautioned that ignoring the directive could lead to civil penalties under the Connecticut Unfair Trade Practices Act or criminal sanctions tied to gaming statutes. Although the state emphasized the dangers of unlicensed wagering, crypto advocates counter that blockchain-based markets may strengthen transparency, produce immutable records, and streamline settlement when placed under clear regulatory oversight.

• Why did Connecticut issue cease and desist orders to Robinhood Derivatives, Crypto.com, and KalshiEX?
  Regulators said the platforms offered unlicensed sports wagering to state residents.
• What risks did officials cite about unregulated sports event contracts?
  They warned of missing safeguards, no insider controls, unreviewed rules, and no remedies for unpaid winnings.
• What must the platforms do immediately under the order?
  They must stop offering gambling services and allow Connecticut residents to withdraw existing funds.
• What penalties could follow if the platforms ignore the directive?
  Violations may trigger civil penalties under consumer protection laws or criminal sanctions tied to gaming statutes.

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