Connecticut Cracks Down on Prediction Market Upstarts, Issuing Cease-and-Desist Orders to Kalshi, Robinhood and Crypto.com

Connecticut's Department of Consumer Protection has issued cease-and-desist orders to Kalshi, Robinhood, and Crypto.com, alleging unlicensed online gambling. The platforms argue their contracts are federally regulated, but Connecticut claims they violate state laws and policies. This marks the latest development in a legal battle unfolding across the country, with multiple states attempting to block online betting startups. Despite regulatory challenges, prediction markets have proven to be big businesses, with Kalshi recently raising $1 billion at an $11 billion valuation.