Connecticut has ordered nine prediction market platforms to stop offering sports event contracts to residents as the state broadens its enforcement against what it considers illegal, unlicensed sports betting.
The Department of Consumer Protection issued cease-and-desist orders to Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict. The companies were directed to immediately stop advertising, promoting, or making available sports event contracts in the state and to allow Connecticut customers to withdraw funds held on their platforms.
Failure to comply could lead to civil penalties under the Connecticut Unfair Trade Practices Act or criminal penalties under state gaming laws, state officials said.
The action follows an August ruling by a federal judge in Connecticut that sports event contracts constitute illegal unlicensed gambling and are not protected by federal commodities law. Earlier this month, the state also sued Kalshi and sought an injunction preventing it from offering unlicensed sports wagers in Connecticut.
“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 Ned Lamont said.
“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.”
Sports prediction markets operate as peer-to-peer exchanges where users buy and sell “yes” or “no” contracts based on sporting outcomes. Connecticut says such products violate state gaming and unfair trade practices laws when offered without a license.
The state also says prediction markets have accepted wagers from people under the legal betting age of 21 and individuals on Connecticut’s voluntary self-exclusion list. Some have also offered wagers on Connecticut collegiate sports, officials said, which are prohibited under state law.
“Our laws are clear: sports betting may only be offered by legal, licensed sportsbooks that adhere to our regulations and technical standards,” Connecticut Consumer Protection Commissioner Bryan T. 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.”
The American Gaming Association estimates $40 billion will be wagered on the NFL through prediction markets this year. One prediction market reported nearly $250 million in college football trading volume on the opening day of the 2026 season last week.
The Department of Consumer Protection issued subpoenas to nine licensed gaming service providers, 15 media organizations and five app store or payment-related businesses seeking information relevant to its investigation. Recipients are not under investigation.
The licensed service providers include PayPal, LexisNexis, Plaid, Paysafecard, Integrity Compliance 360, SportRadar Solutions, Genius Sports Media, Genius Tech International and Socure Inc. Media recipients include Hearst Connecticut Media, The Hartford Courant, Connecticut News Project, Norwich Bulletin, The Patch, The Day, ESPN, Fox61/Tegna Broadcast, NBC Connecticut, WFSB/Gray Media, WTNH/WCTX Nexstar Media, Audacy Inc., Connoisseur Media, iHeartMedia and Red Wolf Broadcasting. Apple App Store, Google Play, Apple Pay, Google Wallet and Stripe were also subpoenaed.
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.
“Gambling is a form of entertainment for many, but it is important to remember that all gambling carries risk, and for some, that risk can become a serious problem,” Nancy Navarretta, commissioner of the Connecticut Department of Mental Health and Addiction Services (DMHAS), said.
“DMHAS offers a statewide network of prevention, treatment, and recovery services for individuals and families affected by gambling harm. Anyone concerned about their own gambling, or worried about someone they love, can call the Problem Gambling Helpline at 1-888-789-7777 and connect with support.”
Original article: https://www.yogonet.com/international/news/2026/09/11/126372-connecticut-orders-nine-prediction-markets-to-halt-sports-event-contracts
