Connecticut’s Department of Consumer Protection (DCP) has issued cease-and-desist orders to nine prediction market platforms over what the state describes as unlicensed sports wagering.
The orders name Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict.
Each must stop advertising, offering or promoting sports event contracts to Connecticut residents and allow users to withdraw funds.
The action expands Connecticut’s enforcement campaign beyond Kalshi, which the state sued in August seeking to prevent it from offering sports event contracts without a state gaming licence.
US District Judge Vernon D Oliver had earlier rejected Kalshi’s request for preliminary relief in its federal challenge to Connecticut’s enforcement, with the operator arguing that the Commodity Exchange Act preempts state gambling laws.
That jurisdictional question has become central to prediction market litigation across the US. The Commodity Futures Trading Commission (CFTC) maintains that federally registered designated contract markets fall under its exclusive authority.
In April, the regulator sued Connecticut, Arizona and Illinois in an attempt to prevent those states from applying their gambling laws to CFTC-regulated platforms. It subsequently brought similar actions involving New York and Wisconsin.
Connecticut argues sports event contracts fall within its existing gambling framework. The state currently authorises DraftKings through Foxwoods, FanDuel through Mohegan Sun and Fanatics through the Connecticut Lottery to offer online sports wagering, with customers required to be at least 21.
Alongside the cease-and-desist orders, DCP issued subpoenas to nine licensed gaming service providers, 15 media organisations and five app store or payment businesses. Recipients include PayPal, Sportradar Solutions, Genius Sports Media, ESPN, Apple and Google.
Connecticut said those organisations are not under investigation but may possess information relevant to its inquiry.
The enforcement comes as prediction markets increase their exposure to US sports. The American Gaming Association expects $29.5bn to be legally wagered through regulated sportsbooks during the 2026 NFL season and has raised concerns that sports event contracts are expanding outside state-regulated betting systems.
Connecticut’s latest action follows a series of state court challenges involving Kalshi. In August, a Montana federal judge denied Kalshi’s request for a preliminary injunction, while Connecticut separately brought its enforcement case against the platform. The disputes form part of a wider legal divide over whether sports event contracts are federally regulated derivatives or gambling products subject to state law.
Connecticut prohibits most wagering on in-state collegiate teams, while its licensed online sportsbooks operate under state age, responsible gambling and self-exclusion requirements
