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HARTFORD, Conn (Gambling911.com) - The Connecticut Department of Consumer Protection has issued cease-and-desist orders to nine prediction market companies ordering them to stop allowing trading on sports related contracts.
Prediction markets let users buy and sell “yes” or “no” contracts tied to the outcome of an event, including sports.
That state regulates and taxes sportsbook operators. Prediction markets like Kalshi and Polymarket claim they are regulated at the federal level to offer such sports event contracts in Connecticut.
The state issued cease-and-desist orders against nine operators: Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict. Connecticut says sports-event contracts constitute unlicensed sports wagering under state law.
“Prediction markets offering sports wagers in ct are operating in violation of ct gaming laws and in violation of ct unfair practices law,” said Bryan Cafferelli, Commissioner, Connecticut Department of Consumer Protection.
They did not issue such letters to Fanatics, DraftKings or FanDuel, each of which have their own prediction market platforms. These are the only companies licensed to take bets in Connecticut.
The state also issued nearly 30 subpoenas to gaming service providers, media organizations and other businesses it says may have information relevant to its investigation. Local Hartford CBS affiliate WFSB confirmed they were among the media organizations that received a subpoena. DCP said those businesses are not under investigation.
While it wasn't immediately clear what the subpoenas to the local CBS affiliate entail, Kalshi commercials are widely shown on network and cable channels nationally. Gambling911.com was unable to independently verify if WFSB itself airs such commercials. The statino has also covered news related to Kalshi extensively. For example, it reported on Connecticut's lawsuit against Kalshi in August, and it covered Kalshi's election markets back in 2024.
“On the first day of the 2026 collegiate football season, one prediction market reported nearly $250 million in trading volume in college football. And the dollars show the youth is clearly at risk,” added Cafferelli.
Connecticut does not permit its licensed sportsbooks to accept bets on in-state schools like UConn, though with one important caveat. Futures bets on the state's beloved UConn Huskies to win the NCAA Basketball Championship (Men's and Women's) is permitted. Single game betting featuring the Huskies is not allowed.
Connecticut's Department of Consumer Protection specifically gives the example that a bet on UConn to win the NCAA Division I National Championship is permitted, while a bet on UConn merely to reach the Final Four is prohibited under this tournament exception.
