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Connecticut Orders Kalshi, Robinhood, Crypto.com to Halt Sports Event Contracts

The move tests whether sports event contracts fall under state gambling rules or exclusive CFTC oversight.

Overview

  • Cease‑and‑desist notices require the platforms to stop offering sports‑linked markets to Connecticut residents and to enable withdrawals, with civil or criminal penalties threatened for noncompliance.
  • State officials say none of the three holds a Connecticut wagering license and cite failures on age limits, integrity controls, consumer protections, and technical security standards.
  • Kalshi filed a federal lawsuit seeking to block enforcement, arguing the Commodity Exchange Act preempts state regulation of its CFTC‑regulated Designated Contract Market.
  • Robinhood says its event contracts are offered through a CFTC‑registered entity, while Crypto.com did not comment in the coverage.
  • Crypto.com announced a Fanatics Markets rollout in multiple states on the same day as the order, underscoring continued expansion despite mounting state actions.