Connecticut has expanded its enforcement campaign against prediction markets offering sports-related contracts, ordering nine platforms to stop providing what state officials describe as illegal online gambling services.
The Connecticut Department of Consumer Protection (DCP) issued cease-and-desist orders to Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict. The companies were instructed to stop advertising, promoting or making sports event contracts available to Connecticut residents.
The state also ordered the platforms to allow customers to withdraw funds held in their accounts.
“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,” Governor Lamont said.
Connecticut Expands Prediction Market Investigation
DCP also issued nearly 30 subpoenas as part of its investigation into prediction-market activity. The requests were sent to gaming service providers, payment companies, technology firms, app platforms and media organizations.
Officials said subpoena recipients are not under investigation and that the information gathered will support the state’s review of prediction-market operations.
The subpoena list includes PayPal, LexisNexis, Plaid, Paysafecard, Integrity Compliance 360, Sportradar Solutions, Genius Sports Media, Genius Tech International and Socure Inc.
Media organizations receiving subpoenas include ESPN, The Hartford Courant, Hearst Connecticut Media, WTNH/WCTX, NBC Connecticut, WFSB, iHeartMedia and other broadcasters and publishers. Apple App Store, Google Play, Apple Pay, Google Wallet and Stripe also received subpoenas.
“Our laws are clear: sports betting may only be offered by legal, licensed sportsbooks that adhere to our regulations and technical standards,” Commissioner Cafferelli said.
Sports Betting Rules Drive Legal Dispute
Connecticut considers sports prediction contracts to be gambling when users place money on sporting outcomes. State officials said some prediction markets have accepted wagers from people under 21, individuals on the state self-exclusion list and customers betting on Connecticut collegiate sports.
The state’s licensed sports betting market includes DraftKings at Foxwoods, FanDuel at Mohegan Sun and Fanatics through the Connecticut Lottery. Sports wagering requires participants to be at least 21, while fantasy contests require users to be at least 18.
The enforcement action follows Connecticut’s dispute with Kalshi, a major prediction-market operator. The state previously sued Kalshi and sought to block its sports contracts. A federal judge ruled in August that sports event contracts are illegal unlicensed gambling and are not protected by federal commodities law.
Prediction-market companies have argued that event contracts belong under federal financial-marketregulation rather than state gambling rules.
Officials Highlight Consumer Protection Concerns
Connecticut officials said prediction markets raise concerns because they operate outside safeguards required for licensed gambling operators.
Nancy Navarretta, commissioner of the Connecticut Department of Mental Health and Addiction Services, reminded residents that gambling carries risks and that support remains available through the Problem Gambling Helpline at 1-888-789-7777.
The American Gaming Association estimates $40 billion could be wagered on the NFL through prediction markets in 2026. One prediction market reported nearly $250 million in college football trading volume on the first day of the 2026 season.
Connecticut’s latest actions continue the state’s effort to determine whether sports prediction contracts should be regulated as gambling or financial products.
Source:
“Governor Lamont Announces New Actions Against Illegal Prediction Markets Offering Sports Wagers in Connecticut”, portal.ct.gov,September 10, 2026
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