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The authorities of the state of Connecticut, represented by the Department of Consumer Protection (DCP), have taken on well-known financial and crypto platforms. Robinhood, Kalshi and Crypto. com were targeted. The reason for the proceedings was that these companies offered smart contracts that could be used to bet on the results of sporting events.

According to representatives of the DCP, this activity is classified as a gambling organization, and for this purpose a special permit is required in the state. None of these companies has a license to conduct such activities.

In the official papers sent to these platforms, the regulator revealed a number of violations. DCP draws attention to the fact that they have weak age verification systems, which allows people under the age of 21 to use their services. In addition, the promotions of these companies were targeted at students on university campuses, and this increases the risk of youth involvement in gambling.

Another complaint is the weak protection of personal data and the lack of measures against betting using insider information. We are talking about situations where the outcome is known in advance, for example, the results of award ceremonies or transfers of athletes, information about which is known to a narrow circle of people before the official announcement.

As a result, the Department of Consumer Protection demanded that the advertising and provision of such services to residents of the state be stopped immediately. Companies must also promptly return the money to users from Connecticut that is "frozen" in contracts. If they do not comply, the management of the companies will face a large fine, and in some cases, a criminal case under local gambling laws.

The actions taken by the Connecticut Department of Consumer Protection make it clear that companies working in this field should not primarily think about cool technologies, but about complying with local laws in each region where they operate. In order for this industry to grow further, it is very important to establish communication with those who set the rules of the game and carefully study the laws before launching something new. This is how you can avoid troubles like the ones that are happening now.