🚨 Connecticut Scolds Robinhood & Crypto.com: No Wagering, Dear Sirs! 🚨

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Pray tell, what mischief has befallen the fair state of Connecticut? It appears the authorities have taken umbrage with the likes of Robinhood, Kalshi, and Crypto.com, accusing them of engaging in unlicensed sports betting through their event contracts. How very daring of them, to flout the rules with such audacity! 😏

The Connecticut Department of Consumer Protection (DCP), ever vigilant in their duties, dispatched letters to these platforms on a Wednesday, declaring them guilty of “conducting unlicensed online gambling, more specifically sports wagering.” Oh, the scandal! Commissioner Bryan Cafferelli, with a stern countenance, proclaimed, “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.” Tsk, tsk, how imprudent! 🧐

Kris Gilman, the DCP Gaming Director, added with a touch of sarcasm, “They deceptively advertise that their services are legal,” and went on to note that these platforms operate outside the state’s regulatory environment, “posing a serious risk to consumers who may not realize that wagers placed on these illegal platforms offer no protections for their money or information.” Oh, the folly of it all! 😱

Prediction markets, it seems, have become the talk of the town, attracting legal scrutiny in several US states. With billions of dollars in investment and users betting on the outcomes of various events, one might wonder if these platforms have bitten off more than they can chew. 🤑

Kalshi Retorts with a Lawsuit, of Course

Kalshi, ever the spirited contender, has fired back in court, declaring itself “a regulated, nationwide exchange for real-world events, and it is subject to exclusive federal jurisdiction.” A spokesperson added, “It’s very different from what state-regulated sportsbooks and casinos offer their customers. We are confident in our legal arguments and have filed suit in federal court.” How very bold! Will they emerge victorious, or shall they be taught a lesson in humility? 🤔

In their complaint against the DCP, Kalshi argued that “Connecticut’s attempt to regulate Kalshi intrudes upon the federal regulatory framework that Congress established for regulating derivatives on designated exchanges.” They further claimed that their platform falls under the “exclusive jurisdiction” of the Commodity Futures Trading Commission and that their sports event contracts are “lawful under federal law.” Oh, the intricacies of the law! 📜

Crypto.com and Robinhood, meanwhile, have remained silent, leaving us to wonder if they are gathering their wits or simply biding their time. 🦜

Connecticut’s DCP, ever the guardian of consumer welfare, warned that prediction market platforms pose serious risks due to their lack of technical standards and security protections for financial and personal data. They also noted the absence of integrity controls to prevent insider betting or manipulation, unregulated payout rules, and the audacity to advertise to self-excluded gamblers and on college campuses. How very improper! 😤

Only three platforms, DraftKings, FanDuel, and Fanatics, have been deemed fit for sports wagering in Connecticut, and even then, users must be at least 21 years old. How very exclusive! 🎩

Kalshi in Hot Water Across the Land

Connecticut is not alone in its disdain for prediction platforms. New York and Massachusetts have also taken a stand, with New York sending a cease and desist to Kalshi in late October, prompting the company to sue the state. Massachusetts, not to be outdone, sued Kalshi in September. Kalshi has also received cease and desist orders from Arizona, Illinois, Montana, and Ohio, and remains entangled in litigation in New Jersey, Maryland, and Nevada. What a tangled web they weave! 🕸️

Despite these trials, Kalshi announced a $1 billion funding round at a valuation of $11 billion, following its best-ever monthly volume in November. Will their fortunes continue to rise, or will they be brought low by the weight of legal woes? Only time will tell. ⏳

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2025-12-04 07:30