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Connecticut officials have escalated their crackdown on sports-related prediction markets, issuing nine cease-and-desist orders to platforms the state says are illegally offering sports wagers to residents.
Governor Ned Lamont and the Connecticut Department of Consumer Protection said the state also sent nearly 30 subpoenas to gaming service providers, media outlets, app stores, and payment platforms that may have information relevant to the investigation. The state said the subpoena recipients are not themselves under investigation.
Connecticut says sports event contracts violate state gaming law
According to the state, the targeted platforms were ordered to stop advertising, offering, promoting, or otherwise making available sports event contracts or other unlicensed online gambling to Connecticut residents. They were also told to let Connecticut customers withdraw any funds currently held on the platforms.
The nine companies named in the cease-and-desist action are Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict.
State officials said these markets violate Connecticut gaming and unfair trade practices laws. They also alleged the platforms have accepted wagers from prohibited bettors, including people under 21 and people on the state’s voluntary self-exclusion list, and have offered wagering on Connecticut college sports, which is prohibited under state law.
Commissioner Bryan T. Cafferelli said Connecticut law is clear that sports betting may only be offered by licensed sportsbooks that comply with state regulations and technical standards. The state said the only licensed sports betting platforms in Connecticut are DraftKings through Foxwoods, FanDuel through Mohegan Sun, and Fanatics through the Connecticut Lottery.
Subpoenas reach payment firms, app stores, and media companies
The state said subpoenas went to nine licensees and 15 media organizations, as well as app stores and payment processors including Apple App Store, Google Play, Apple Pay, Google Wallet, and Stripe.
Named licensees included PayPal, LexisNexis, Plaid, Paysafecard, Integrity Compliance 360, SportRadar Solutions, Genius Sports Media, Genius Tech International, and Socure Inc.
The announcement follows a separate lawsuit Connecticut filed earlier this month against Kalshi, in which the state sought a court injunction to block the company from offering what it described as unlicensed sports wagers. The release also pointed to an August ruling from a federal judge in Connecticut that sports event contracts are illegal unlicensed gambling and are not protected by federal commodities law.
What players should know
For players, the immediate takeaway is that Connecticut is treating sports-related prediction markets as an enforcement issue, not a regulatory gray area. The state warned that failure to comply could lead to civil penalties under the Connecticut Unfair Trade Practices Act and possible criminal penalties under Connecticut gaming statutes.
Connecticut also reiterated that online or in-person gaming and sports wagering require participants to be at least 21, while fantasy contests are limited to those 18 and older. Consumers can report gaming-related concerns to [email protected]. The Connecticut Council on Problem Gambling’s 24/7 confidential helpline is 1-888-789-7777.
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Source: As reported by portal.ct.gov.
