Connecticut has ordered Robinhood, Crypto.com and Kalshi to stop offering “sports event contracts” to state residents, saying these platforms are conducting unlicensed gambling despite marketing their services as legal prediction markets or investments.

State regulators argue the contracts function as sports bets and require a gaming license, while raising concerns about consumer protections, underage access and compliance with state gambling laws.

The three companies are among several fintech platforms facing national scrutiny over whether their prediction market offerings constitute gambling or legitimate trading.