Table of Contents
Connecticut’s Department of Consumer Protection (DCP) issued cease-and-desist orders on 10 September to nine prediction market platforms, ordering them to stop advertising, promoting or offering sports event contracts to state residents with immediate effect.
The orders name Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict. Each platform must also let Connecticut residents withdraw the funds they hold.
Failure to comply carries civil penalties under the Connecticut Unfair Trade Practices Act (CUTPA) and criminal penalties under the state’s gaming statutes. Consumer Protection Commissioner Bryan Cafferelli said one of the nine has already committed to complying.
“Our laws are clear: sports betting may only be offered by legal, licensed sportsbooks that adhere to our regulations and technical standards,” Cafferelli said.
Governor Ned Lamont said the platforms “have branded themselves as legal and safe, but the reality is they are not adhering to Connecticut’s consumer protection standards.”
Subpoenas reach payments, data and media
DCP issued close to 30 subpoenas alongside the orders. Recipients include nine licensed gaming service providers, among them PayPal, LexisNexis and Plaid, plus 15 media organisations, app stores and payment processors. DCP said the recipients are not themselves under investigation and are being asked for information relevant to the platforms’ operations.
The subpoenas cover the companies that sit between the platforms and Connecticut users: app store distribution, payment rails, identity and verification vendors, and the outlets carrying their advertising.
Kalshi sits outside this action
Kalshi is not among the nine. Connecticut is pursuing the exchange in court instead. Attorney General William Tong sued Kalshi on 26 August, seeking an injunction to stop it offering sports wagers to state residents.
“Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticut’s commonsense consumer protection laws,” Tong said at the time.
US District Judge Vernon Oliver denied Kalshi’s motion for a preliminary injunction against Connecticut enforcement earlier in August. Kalshi appealed to the Second Circuit. The state cites that ruling as the basis for the wider enforcement round. Kalshi lost a similar bid in New York in July, when Judge Analisa Torres denied its injunction request and the company appealed the same day.
Federal and state claims still conflict
The Commodity Futures Trading Commission (CFTC) sued Connecticut, Arizona and Illinois on 2 April, arguing that the Commodity Exchange Act gives it exclusive jurisdiction over event contracts and pre-empts state gaming law. It has since filed against Wisconsin and Rhode Island on the same grounds.
Appeal courts have split. The Ninth Circuit ruled 3-0 on 1 September that Nevada can regulate Kalshi’s sports event contracts under state gaming law, against the Third Circuit’s April decision the other way. Connecticut’s orders were issued while that split stands.
What the licensed market is defending
Connecticut permits online sports betting through three operators: DraftKings through Foxwoods, FanDuel through Mohegan Sun and Fanatics through the Connecticut Lottery. The legal age is 21 for sports wagering and 18 for fantasy contests.
The American Gaming Association (AGA) estimated on 4 September that legal wagering on the 2026 NFL season will reach $29.5bn, flat against $29.4bn a year earlier. It attributes the stall to prediction markets and puts foregone state gaming tax revenue at more than $1.3bn since 2025. The AGA also reported $5.1bn in Kalshi sports volume from users aged 18 to 20, a group Connecticut bars from sports betting.
Nancy Navarretta, commissioner of the Department of Mental Health and Addiction Services, used the announcement to restate the risk: “Gambling is a form of entertainment for many, but it is important to remember that all gambling carries risk.” The state points residents to the Problem Gambling Helpline on 1-888-789-7777 and to ccpg.org.
The orders take effect now, leaving the nine platforms a choice between geoblocking Connecticut and defending a CUTPA action. Polymarket is already blocked in South Korea and, alongside Kalshi, in Spain. Kalshi’s Second Circuit appeal covers the same Connecticut enforcement these orders rest on, and a decision there would apply to all nine.
Source: Office of Governor Ned Lamont, Connecticut Department of Consumer Protection, Connecticut Attorney General, American Gaming Association
