Connecticut Sues Kalshi Over Sports-Event Contracts
Jesse M. Cox Published 28/08/2026
The lawsuit is new. However, the rationale behind the filing is covering familiar territory. Connecticut has filed suit against prediction market site Kalshi. At issue is whether sports-event contracts are illegal sports betting. Connecticut Attorney General William Tong filed suit in Hartford Superior Court, alleging the sports-event contracts constitute illegal, unlicensed sports betting. The suit also cites consumer protection concerns.
The legal filing follows a failed attempt by Kalshi to block the state's earlier cease-and-desist order. A federal judge blocked Kalshi's bid. Kalshi Head of Litigation Jovy Dedaj described Connecticut's enforcement action as arbitrary and inconsistent.
Connecticut's battle with Kalshi began in December
The showdown between Kalshi and Connecticut lawmakers began toward the end of last year. In December 2025, the Connecticut Department of Consumer Protection Gaming Division (DCP) ordered Kalshi and two other sites to cease and desist from conducting unlicensed online gambling. Specifically, they were referring to sports wagering. All three platforms were ordered to immediately cease and desist from advertising, offering, promoting, or otherwise making available sports event contracts or any other form of unlicensed online gambling to Connecticut residents.
The DCP also ordered all three platforms to allow Connecticut residents to withdraw any funds currently held by the platforms.
Kalshi responded by suing the state. The prediction market company was seeking a preliminary injunction against enforcement of Connecticut law. Kalshi's lawyers were arguing that its prediction contracts are swaps regulated solely by the federal Commodity Futures Trading Commission (CFTC). Earlier this month, United States District Judge Vernon Oliver denied Kalshi’s motion. Kalshi has since appealed to the Second Circuit Court of Appeals.
The outline for the Connecticut lawsuit covers familiar territory
In its filing, the state Attorney General's Office outlines the parallels between sports-event contracts and sports betting.
"Kalshi offers sports event contracts that resemble sports wagers, including whether a team or player will win a sporting event or series; the number of wins a team will have in a season; league rankings; number of points scored in a match; point spread; and player statistics such as points scored or winning a match by a certain method," noted a release from Connecticut's Office of the Attorney General. "This is gambling."
Connecticut Attorney General Tong echoed those sentiments.
“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 in a statement. "These laws exist for a reason—to protect minors, to prevent problem gambling, to ensure your money is safe and your personal information is protected.
"None of that is happening now on Kalshi, and we’re suing to put a stop to it."
The Governor is also backing the state's legal action
Connecticut Governor Ned Lamont added his two cents to the situation. He's in alignment with his Attorney General. He believes the legal action is a necessity to help protect young adults living in Connecticut.
“These prediction markets put Connecticut consumers, young people, our student athletes, and those suffering from gambling addiction at serious risk," Lamont said in a statement. "They have made it clear their goal is profits over people, and that’s why we are holding them accountable. "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 on sports betting."