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Connecticut strengthens sports betting regulations for cryptocurrency platforms
The Connecticut consumer protection authorities have begun strengthening regulations against multiple unlicensed sports betting services. They have ordered these platforms to cease operations for offering sports betting products without obtaining the appropriate state licenses.
Response of Regulated Services
Some platforms claim that their services are under the regulation of the Commodity Futures Trading Commission (CFTC) and are opposing the state’s actions. However, the state authorities point out that federal regulations and state gambling regulations are separate issues. They are requiring proper licensing from the state. Some platforms have not yet submitted formal responses.
Distinction from Licensed Operators
In Connecticut, only a limited number of operators are licensed to provide legal sports betting services. The state authorities recognize DraftKings, FanDuel, and Fanatics as the only licensed entities authorized to operate sports betting within the state.
Future Regulatory Policy
Platforms that do not comply with the orders may face civil and criminal penalties. This measure indicates a tightening of the state’s oversight of the gambling industry and aims to clarify the legal boundaries of cryptocurrency-related services. Protecting consumers and maintaining industry order remain central to the state’s regulatory policies.