Overview
- Connecticut’s Department of Consumer Protection directed the three platforms to stop offering sports event contracts to residents, permit withdrawals, and warned of possible civil and criminal penalties for noncompliance.
- Kalshi filed a federal lawsuit challenging Connecticut’s authority and said it will seek emergency court relief, arguing its exchange is under the CFTC’s exclusive jurisdiction.
- Robinhood said its event contracts are offered through a CFTC‑registered entity, while Crypto.com did not comment as it continued expansion with a Fanatics Markets launch in 10 states this week.
- State officials cited consumer risks including under‑21 access, lack of technical and integrity safeguards, insider‑betting concerns, unreviewed payout rules, and marketing to people on the self‑exclusion list.
- Connecticut emphasized that only DraftKings (Foxwoods), FanDuel (Mohegan Sun), and Fanatics (Connecticut Lottery) are licensed for sports wagering in the state, as similar disputes unfold in New York, Massachusetts and other jurisdictions.