The Connecticut Department of Consumer Protection’s Gaming Division (DCP) has served cease-and-desist letters to Kalshi, Crypto.com and Robinhood.
The regulator said the prediction markets were offering online sports betting in the state without a licence.
Other issues cited by the regulator include the platforms’ alleged lack of integrity controls, lack of adherence to state technical standards and advertisement to individuals on self-exclusion lists and individuals under 21.
The regulator has also ordered all three platforms to allow Connecticut residents to withdraw their funds.
Failure by the platforms to comply with the order could result in civil penalties under the Connecticut Unfair Trade Practices Act and/or criminal penalties for violations of Connecticut’s gaming statutes, according to the DCP.
Only DraftKings, FanDuel and Fanatics are currently licensed to offer sports betting in the state.
“Only licensed entities may offer sports wagering in the state of Connecticut,” said DCP commissioner Bryan T Cafferelli.
“None of these entities possess a licence 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.”
Kris Gilman, DCP gaming director, added: “These platforms are deceptively advertising that their services are legal, but our laws are clear.
“They are also operating outside of a regulatory environment, posing a serious risk to consumers who may not realise wagers placed on these illegal platforms offer no protections for their money or information. A prediction market wager is not an investment.”
Kalshi has since filed a lawsuit against the regulator over the cease-and-desist order.
Robinhood recently stopped offering its prediction markets in Nevada after a federal judge ruled in favour of the Nevada Gaming Commission.
The Nevada regulator had sent cease-and-desist letters to both Robinhood and Kalshi in March.
Kalshi was also served a cease-and-desist letter by the New York State Gaming Commission in October, following the lead of Arizona and Illinois earlier in the year.
The post Connecticut sends cease-and-desists to Kalshi, Robinhood and Crypto.com first appeared on EGR Intel.
State gambling regulator follows its counterparts across the US in clampdown against prediction markets
The post Connecticut sends cease-and-desists to Kalshi, Robinhood and Crypto.com first appeared on EGR Intel.