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Connecticut has widened its prediction market enforcement by ordering nine platforms to stop offering sports event contracts to residents.
The action adds Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict to a state campaign that already includes a court fight with Kalshi. Connecticut treats sports event contracts as unlicensed sports betting rather than federally protected financial products.
Good to Know
The Department of Consumer Protection ordered all nine companies to stop advertising, promoting or offering sports contracts in Connecticut and to let customers withdraw money already held on the platforms.
Noncompliance could bring civil penalties under the Connecticut Unfair Trade Practices Act or criminal action under state gambling laws.
The latest orders follow an August federal court ruling that backed the Connecticut position that sports event contracts can fall under state gambling law. Connecticut also sued Kalshi and requested an injunction aimed at preventing the platform from offering sports wagers without a state licence.
Prediction markets generally let users trade yes or no contracts tied to an event result. Platform operators often argue that contracts traded through federally regulated exchanges fall under Commodity Futures Trading Commission jurisdiction.
Connecticut takes a different view when the underlying event is a sports result. The state says a sports contract meets the definition of gambling and therefore requires approval under the Connecticut gaming framework.
That legal divide has become one of the central questions facing prediction markets across the US.
Consumer protection forms another part of the Connecticut case.
Officials say prediction market operators have accepted customers below the state sports betting age of 21, served people listed under voluntary self exclusion and offered contracts involving Connecticut college sports. State law restricts wagering on in state collegiate events.
Connecticut Consumer Protection Commissioner Bryan T. Cafferelli said:
“Our laws are clear: sports betting may only be offered by legal, licensed sportsbooks that adhere to our regulations and technical standards.”
The regulated Connecticut sports betting market currently includes DraftKings through Foxwoods, FanDuel through Mohegan Sun and Fanatics through the Connecticut Lottery. Sports wagering requires a minimum age of 21, while fantasy contest participation starts at 18.
Connecticut has also widened the investigation beyond prediction market companies.
The Department of Consumer Protection sent subpoenas to nine licensed gaming service providers, 15 media businesses and several app store and payment companies. Recipients include PayPal, Plaid, Genius Sports, Sportradar, ESPN, Apple, Google and Stripe. The department said those businesses are not under investigation but may hold information relevant to the case.
The legal dispute also touches the wider Connecticut gaming structure. Testimony submitted to state lawmakers earlier in 2026 argued that prediction markets could affect the existing framework between Connecticut, the Mohegan Tribe and the Mashantucket Pequot Tribal Nation.