Connecticut halts sports event contracts offered by nine prediction market platforms as part of its crackdown on illegal sports betting in the state.
The Department of Consumer Protection has issued cease-and-desist orders to Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict. These companies must immediately stop advertising, promoting, or making sports event contracts available in Connecticut and allow customers to withdraw funds.
Failure to comply may result in civil penalties under the Connecticut Unfair Trade Practices Act or criminal penalties under state gaming laws, officials warn.
This action follows a federal judge’s ruling in August that sports event contracts are considered illegal unlicensed gambling in Connecticut and are not protected by federal commodities law. Additionally, the state has also filed a lawsuit against Kalshi to prevent the offering of unlicensed sports wagers in Connecticut.
“Connecticut is leading the way in consumer protection, safeguarding individuals, including young people, student athletes, and those with gambling addiction, from unregulated gambling markets that put finances and information at risk,” said Governor Ned Lamont.
“Prediction markets claim to be legal and secure, but they are not in compliance with Connecticut’s consumer protection standards and gaming laws, and are misleading consumers by claiming their activities are legal. When sports wagering was legalized in 2021, the aim was to establish a safe, responsibly regulated market for Connecticut consumers, not to allow a free-for-all.”
Sports prediction markets operate as peer-to-peer exchanges where users can buy and sell contracts based on sporting outcomes. Connecticut argues that such products violate state gaming laws and unfair trade practices when offered without a license.
The state also notes that prediction markets have accepted wagers from individuals under the legal betting age of 21 and those on Connecticut’s self-exclusion list. Some platforms have even offered bets on Connecticut collegiate sports, which is prohibited by state law.
“Our laws are clear: legal sports betting must be offered by licensed sportsbooks in compliance with regulations and technical standards,” stated Connecticut Consumer Protection Commissioner Bryan T. Cafferelli. “As a consumer protection agency, we will continue to protect all Connecticut consumers from deceptive business practices that jeopardize their well-being, personal data, and finances.”
The American Gaming Association estimates that $40 billion will be wagered on NFL games through prediction markets this year. One prediction market reported nearly $250 million in college football trading volume on the first day of the 2026 season last week.
The Department of Consumer Protection has issued subpoenas to nine licensed gaming service providers, 15 media organizations, and five app store or payment-related businesses to gather information for its investigation. Recipients are not currently under investigation.
Connecticut currently licenses DraftKings through Foxwoods, FanDuel through Mohegan Sun, and Fanatics through the Connecticut Lottery to offer sports wagering. Participants must be at least 21 for sports wagering and gaming, while fantasy contest participants must be at least 18.
“While gambling is a form of entertainment for many, it’s essential to recognize that all gambling involves risk, and for some, that risk can escalate into a serious issue,” said Nancy Navarretta, Commissioner of the Connecticut Department of Mental Health and Addiction Services (DMHAS).
“DMHAS provides a statewide network of prevention, treatment, and recovery services for individuals and families impacted by gambling harm. Anyone concerned about their gambling behavior or the behavior of a loved one can contact the Problem Gambling Helpline at 1-888-789-7777 for support.”