Connecticut has ordered nine prediction market platforms to stop offering sports event contracts considered as unlicensed sports betting.
Governor Ned Lamont and the Department of Consumer Protection issued cease-and-desist orders to Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict.
The companies were told to stop advertising, offering, promoting or making sports event contracts and other forms of unlicensed online gambling available in Connecticut. They must also allow residents to withdraw funds held on their platforms.
Failure to comply could lead to civil penalties under the Connecticut Unfair Trade Practices Act or criminal penalties under state gaming laws.
Governor rejects claims that prediction markets operate legally
Connecticut treats sports prediction contracts as sports wagers and says they may only be offered by state-licensed operators.
“Prediction markets have branded themselves as legal and safe, but the reality is they are not adhering to Connecticut’s consumer protection standards and gaming laws, and they are not being truthful when they tell consumers that their activities are legal,” Lamont said. “When we legalised sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers, not to open a free-for-all.”
Connecticut licenses DraftKings through Foxwoods, FanDuel through Mohegan Sun and Fanatics through the Connecticut Lottery. Customers must be at least 21 for sports betting, while the minimum age for fantasy contests is 18.
“We are, first and foremost, a consumer protection agency, and we will continue to do everything we can to protect all Connecticut consumers from misleading business practices that compromise their health and safety, personal information and hard-earned money,” Cafferelli said.
Officials raise concerns over minors and college sports contracts
The state alleges that prediction market platforms have accepted wagers from prohibited bettors, including under-21s and people enrolled in Connecticut’s voluntary self-exclusion programme.
State law prohibits betting on events involving Connecticut colleges unless a team is participating in an intercollegiate tournament. Connecticut cited American Gaming Association estimates that $40 billion will be wagered on the NFL through prediction markets this year.
The state also said one operator recorded almost $250 million in college football trading volume on the opening day of the 2026 season. Connecticut Council on Problem Gambling Executive Director Diana Goode backed the enforcement approach.
“We support the state’s efforts, including seeking judicial remedies, when necessary, to preserve the integrity of Connecticut’s regulatory system and ensure that innovation or new terminology is never used to circumvent the protections Connecticut residents deserve,” Goode said.
Subpoenas widen investigation across payments, media and data providers
DCP also issued 29 subpoenas to organisations that may hold information relevant to its investigation, stressing that recipients are not themselves under investigation.
Nine licensed gaming service providers received subpoenas, including PayPal, LexisNexis, Plaid, Paysafecard, Integrity Compliance 360, Sportradar Solutions, Genius Sports Media, Genius Tech International and Socure.
Fifteen media organisations were also served, including ESPN, Hearst Connecticut Media, The Hartford Courant, NBC Connecticut, Fox61, WFSB, WTNH/WCTX, Audacy and iHeartMedia. Apple App Store, Google Play, Apple Pay, Google Wallet and Stripe also received subpoenas.
Kalshi lawsuit remains central to Connecticut’s wider enforcement push
The latest action follows Connecticut’s lawsuit against Kalshi, seeking an injunction to stop it offering sports contracts without a state licence.
Officials argue that Kalshi’s products function like conventional sports wagers despite being presented as federally regulated financial derivatives. An August federal court ruling allowed Connecticut to continue enforcing its gambling laws while the dispute proceeds.
Kalshi maintains that its contracts fall under the exclusive jurisdiction of the US Commodity Futures Trading Commission and has appealed to the Second Circuit Court of Appeals.
State lawmakers also advanced House Bill 5229 and Senate Bill 296 in May, covering gambling advertising, college sports, match-fixing, insider betting and the impact of prediction markets on the regulated sector.
Connecticut is treating prediction markets as a direct challenge to its regulated sports betting framework. The subpoenas highlight that the state is also looking beyond operators and examining the payment, media and technology infrastructure. This supports access to the platforms.
Share
4 views
