Connecticut's consumer protection watchdog just dropped the hammer on several major platforms. The state agency fired off cease and desist letters to Kalshi, Robinhood, and other operators, accusing them of running what officials call illegal online gambling operations that violate Connecticut state law.

This enforcement action marks another regulatory clash in the evolving landscape of prediction markets and trading platforms. The crackdown raises fresh questions about where states draw the line between legitimate financial products and gambling activities—a distinction that's getting blurrier by the day.

For platforms caught in the crosshairs, this could signal a wave of similar actions from other states looking to assert jurisdiction over digital trading activities.