Robinhood's Stock Increases Despite Cease-and-Desist Order from Connecticut

Robinhood's Stock Performance: Robinhood Markets Inc. shares increased to $137.08 per share, up 2.57%, despite a cease-and-desist order from Connecticut regulators regarding its prediction market operations.

Regulatory Issues: The Connecticut Department of Consumer Protection issued orders against Robinhood Derivatives and others for offering sports event contracts without proper licensing, emphasizing that only licensed entities can provide sports wagering in the state.

Company's Position: Robinhood clarified its status as a financial technology company rather than a bank, stating that customer deposits are held through a partner bank with FDIC coverage, and it is complying with the state's order to halt contracts.

Broader Legal Challenges: Other states like Nevada and New Jersey are also attempting to block online prediction markets, while companies like Kalshi argue their operations are protected under federal law, leading to ongoing legal disputes in the industry.