Connecticut Coming For Prediction Market Partners
Jesse M. Cox Published 14/09/2026
partThe Connecticut Department of Consumer Protection (DCP) issued cease-and-desist orders to nine prediction market sites and subpoenas to 29 companies that are working with them. These cease-and-desist orders call for the sites to halt the offering of sports-event contracts in the state. Under the order, the state alleges that sports-event contracts are illegal sports betting. That would mean they are governed by state sports betting laws and not federal regulations.
The subpoenas were issued to payment firms and media companies that do business with prediction market sites that operate in the state. The DCP says these measures are necessary to protect the integrity of sports betting in the state.
Connecticut isn't fooling around when it comes to prediction markets
Connecticut isn't playing around when it comes to policing prediction markets. Nine sites were issued cease-and-desist orders. They include Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict. The Connecticut government argues that prediction market sites must follow the same state regulations as sports betting operators in the state adhere to.
“Connecticut has been at the forefront of this issue, leading the way in protecting consumers—including young people, student athletes, and those suffering from gambling addiction—from unregulated gambling markets, which put your money and information at risk,” Connecticut Governor Ned Lamont said in a statement. “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.
"When we legalized sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers. Not to open a free-for-all.”
That sentiment was echoed by DCP Commissioner Bryan T. Cafferelli.
“Our laws are clear: sports betting may only be offered by legal, licensed sportsbooks that adhere to our regulations and technical standards,” Cafferelli said. “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.”
Media companies and payment firms are viewed as enablers of prediction markets
Connecticut is the first state to fire a salvo at companies that choose to work with prediction market sites. Among the 29 sites that were issued subpoenas were ESPN, PayPal, the Hartford Courant, Audacy, iHeart Media, Google, and Apple.
The DCP made note that it had issued subpoenas to any businesses that may have information pertinent to the state’s investigation into the operations of prediction markets. Subpoenas have been issued to a total of 9 licensees and 15 media organizations. However, businesses that received subpoenas are not under investigation by the department.
Connecticut previously filed suit against Kalshi
Earlier this month, Connecticut sued Kalshi, the largest prediction market operator. The state sought a court injunction to block the online betting site from offering unlicensed sports wagers in the state.
A federal judge in Connecticut ruled in August that sports event contracts are illegal unlicensed gambling. That would mean they are not protected by federal commodities law.
In Connecticut, there are three gaming platforms licensed to offer sports wagering. They are DraftKings (Foxwoods), FanDuel (Mohegan Sun), and Fanatics (Connecticut Lottery). Participants must be at least 21 years old to engage in online or in-person gaming or sports wagering. For fantasy contests, participants must be at least 18 years old.