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Checked Oct. 21, 2026

CT ยท Checked Oct. 21, 2026

Prediction market law in Connecticut

In litigation

Connecticut is suing Kalshi, has ordered nine other platforms to stop sports contracts, and won a federal ruling Kalshi is appealing.

Connecticut's Department of Consumer Protection ordered Kalshi, Robinhood and Crypto.com to stop offering sports event contracts in December 2025, and Kalshi, Coinbase and later Underdog sued the state in federal court. In August 2026, U.S. District Judge Vernon D. Oliver denied Kalshi a preliminary injunction, and Kalshi appealed to the Second Circuit; a joint argument with Coinbase's appeal is reported for November 3, 2026. The state then sued Kalshi in Hartford Superior Court (since removed to federal court) and on September 10 issued cease-and-desist orders to nine more platforms plus about 30 subpoenas. A separate federal suit by the United States and the CFTC challenging Connecticut's enforcement has a pending preliminary-injunction motion.

Timeline of state actions

  1. Other development, Gemini, Webull, other

    DCP said three platforms, Gemini, Webull and ProphetX, had stopped offering sports contracts in Connecticut after the September orders; ProphetX's exit is disputed.

    Source: DeFi Rate legal tracker

  2. Operator lawsuit, Underdog

    Underdog sued Connecticut officials over the state's cease-and-desist order.

    Source: Mick Bransfield litigation tracker

  3. Other development

    The United States and the CFTC moved for a preliminary injunction against Connecticut's enforcement; Robinhood moved to intervene.

    Source: DeFi Rate legal tracker (snapshot)

  4. Cease-and-desist, Polymarket, Coinbase, Crypto.com, Robinhood, Novig, Webull, Gemini, Underdog, other

    DCP ordered nine platforms (including ProphetX) to stop offering sports event contracts and issued about 30 subpoenas to vendors, payment firms, app stores and media outlets.

    Source: Office of Gov. Ned Lamont press release

  5. State lawsuit, Kalshi

    AG William Tong and DCP sued Kalshi in Hartford Superior Court seeking to stop its sports contracts plus restitution and civil penalties; the court denied an ex parte TRO that day, and Kalshi later removed the case to federal court.

    Source: InGame

  6. Court order, Kalshi

    The court also denied Kalshi's emergency motion for an injunction pending appeal.

    Source: Public Gaming Research Institute

  7. Court order, Kalshi

    Judge Vernon D. Oliver denied Kalshi's motion for a preliminary injunction, finding its sports contracts are not swaps protected by federal law; Kalshi appealed.

    Source: Vultax lawsuit tracker

  8. Legislation

    Gov. Ned Lamont signed HB 5229, a gaming bill that includes a state study of prediction markets due by February 2027 (month only reported).

    Source: The Lines

  9. Other development

    The Connecticut attorney general was one of 41 attorneys general on a comment letter asking the CFTC to confirm in rulemaking that it lacks jurisdiction over sports-related event contracts.

    Source: Colorado Attorney General (coalition press release)

  10. Other development, Kalshi, Crypto.com, Robinhood

    The United States and the CFTC sued Connecticut in federal court, arguing federal law preempts its enforcement against CFTC-registered exchanges.

    Source: Vultax lawsuit tracker

  11. Operator lawsuit, Kalshi

    Kalshi sued Connecticut regulators in federal court (KalshiEX LLC v. Cafferelli), arguing only the CFTC can regulate its contracts (month only confirmed).

    Source: Action Network prediction market lawsuit tracker

  12. Operator lawsuit, Coinbase

    Coinbase sued Connecticut officials in federal court (Coinbase Financial Markets v. Tong) (month only confirmed).

    Source: Action Network prediction market lawsuit tracker

  13. Cease-and-desist, Kalshi, Robinhood, Crypto.com

    DCP's Gaming Division ordered the three platforms to stop offering sports event contracts to Connecticut residents and to let residents withdraw funds.

    Source: Connecticut DCP press release

Laws and bills

  • HB 5229Enacted

    An Act Concerning Gaming

    Gaming bill that, among other changes, directs DCP, the attorney general, the CT Lottery and tribal operators to study prediction markets, with results expected by February 2027.

    Source: publicgaming.com

  • HB 5038Failed

    Prediction market platforms (under-21 restrictions)

    Governor's bill to bar prediction market platforms from serving or advertising to people under 21; not passed before adjournment.

    Source: mickbransfield.com

Court cases

Sources

  1. Action Network prediction market lawsuit tracker
  2. Connecticut DCP press release
  3. Vultax lawsuit tracker
  4. Colorado Attorney General (coalition press release)
  5. The Lines
  6. Public Gaming Research Institute
  7. InGame
  8. Office of Gov. Ned Lamont press release
  9. DeFi Rate legal tracker (snapshot)
  10. Mick Bransfield litigation tracker
  11. DeFi Rate legal tracker
  12. HB 5229
  13. HB 5038