Connecticut regulators have issued cease-and-desist orders to nine companies offering sports prediction markets to state residents.
The Connecticut Department of Consumer Protection, also known as DCP, said the platforms are offering sports event contracts that the state views as unlicensed sports wagering. Officials say the products may look different from traditional sportsbook bets, but they can still allow users to risk money on the outcome of sporting events.
The action adds new pressure to the growing prediction markets industry, where companies argue that their event contracts are federally regulated financial products rather than gambling. And with the start of the NFL season, we are seeing wagering like never before. Thanks, in part, to prediction markets.
In fact, a recent study found 84% of U.S. NFL bettors have heard of prediction markets, and 60% plan to trade event contracts this season.
Connecticut Issues Orders to Nine Prediction Markets
Gov. Ned Lamont and DCP Commissioner Bryan T. Cafferelli announced the enforcement action.
The cease-and-desist orders direct the companies to immediately stop advertising, promoting, offering, or making sports event contracts available to Connecticut residents. The orders also require the platforms to allow Connecticut users to withdraw money held in their accounts.
The nine companies named in the Connecticut action are:
- Polymarket
- Coinbase
- Crypto.com
- Robinhood
- ProphetX
- Novig
- Webull
- Gemini
- Underdog Predict
State officials said companies that do not comply could face civil penalties under the Connecticut Unfair Trade Practices Act. They could also face possible criminal penalties under Connecticut gaming laws.
Why Connecticut Views Prediction Markets as Sports Betting
Prediction markets generally allow people to buy and sell contracts tied to future events. In sports markets, users may be able to take a “yes” or “no” position on whether a team will win, a player will reach a milestone, or another game-related outcome will happen.
Connecticut officials argue that these sports event contracts are effectively bets on sports results.
The state has a regulated sports betting system with only three approved operators:
Licensed Connecticut Operator / Market Connection
DraftKings: Tribal casino partnership
FanDuel: Tribal casino partnership
Fanatics: Connecticut Lottery
According to the DCP, prediction market operators offering sports contracts are not licensed under Connecticut’s sports wagering structure.
That matters because licensed sportsbooks must follow state rules designed to protect consumers. Those rules include age limits, responsible-gambling safeguards, data and security standards, and advertising restrictions.
Connecticut requires sports bettors to be at least 21 years old. Licensed operators also face limits on marketing to people on the voluntary self-exclusion list and on advertising around college campuses.
The state also restricts certain betting markets, including wagers involving Connecticut college teams in some situations.
DCP Raises Consumer-Protection Concerns
Connecticut’s enforcement action is not only about licensing. State officials say unregulated prediction markets may not offer the same consumer protections required of legal sportsbooks.
The DCP’s concerns include:
- Possible access by people under age 21.
- Lack of responsible-gambling controls for people with gambling problems.
- Advertising that may reach self-excluded users or college students.
- Fewer state-required data security and technical protections.
- Markets that could involve betting types banned or limited in Connecticut.
The department also issued nearly 30 subpoenas to gaming-service-provider licensees, media companies, and other organizations that may have information about prediction market operations or advertising.
Those subpoena recipients were not identified as targets of the investigation. Instead, the subpoenas appear to be part of the state’s broader effort to understand how sports-related prediction markets are being offered and promoted in Connecticut.
Connecticut Expands Earlier Action Against Event Contracts
The orders build on Connecticut’s earlier action against sports prediction markets.
In December 2025, the DCP issued similar cease-and-desist orders involving Kalshi, Robinhood Derivatives, and Crypto.com. Connecticut later sued Kalshi and sought an injunction.
A federal district court denied Kalshi’s request for a preliminary injunction. Kalshi has appealed and has argued that its event contracts are federally regulated swaps overseen by the Commodity Futures Trading Commission, or CFTC.
That argument is at the center of a wider legal fight.
Prediction market operators say their products should fall under federal commodities law. State gaming regulators, meanwhile, argue that contracts based on sporting events are sports bets when users risk money on game outcomes.
What the Connecticut News Means for Prediction Markets
Connecticut’s action shows that prediction markets are facing increasing scrutiny at the state level, especially when they offer contracts tied to sports.
The dispute could have major consequences for companies that want to offer sports event contracts across the country. If states successfully classify those products as sports betting, operators may need state gaming licenses and may have to follow the same rules as sportsbooks.
If courts instead side with prediction market companies, the industry could gain a path to offer sports-related contracts under federal oversight.
For now, Connecticut has made its position clear: sports-linked prediction markets offered to state residents are being treated as unlicensed gambling unless the operator is authorized under state law.
Frequently asked questions
Are prediction markets legal in Connecticut?
Connecticut regulators are treating prediction markets that offer sports-related event contracts as illegal unlicensed sports wagering. The state has ordered nine platforms to stop making those contracts available to Connecticut residents.
Which prediction markets received Connecticut cease-and-desist orders?
The companies named by the DCP are Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict.
Why is Connecticut targeting prediction markets?
The state says sports event contracts function like sports bets. Officials argue that the platforms do not have Connecticut sports betting licenses and may not meet the consumer-protection, age-verification, advertising, security, and responsible-gambling standards required of licensed sportsbooks.
Can Connecticut residents withdraw money from affected platforms?
The cease-and-desist orders require the named companies to let Connecticut users withdraw funds held on their platforms.
Are prediction markets regulated by the CFTC?
Several prediction market companies argue that their contracts are federally regulated by the Commodity Futures Trading Commission. Connecticut and other state regulators have disputed that position when the contracts involve sports outcomes.
