The US state of Connecticut is taking its battle against prediction markets one step forward. In a recent development, state officials asked nine companies to stop offering sports event contracts to residents.
They also warned about the fast-paced growth of these platforms that could put certain categories of individuals at risk. The list includes young people, student-athletes, and vulnerable gamblers.
Cease-and-Desist Orders
The Connecticut Department of Consumer Protection issued cease-and-desist orders to popular prediction market operators, including Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict.
State officials claim the respective companies are operating illegally since they are offering sports wagers without the proper licenses required under Connecticut law.
The action comes amid prediction market’s quick expansion across the US. Data from the American Gaming Association says a total of about $40 billion will be wagered on the National Football League alone via prediction markets this year.
During the first day of the 2026 college football season, one prediction market reported almost $250 million in trading volume on college football alone.
“We’re Putting Our Kids at Risk”
Connecticut Gov. Ned Lamont said the state had been deliberate about how it legalized sports betting in 2021, including safeguards intended to protect younger consumers and people dealing with gambling problems.
“We’re putting ourselves at risk. We’re putting our kids at risk,” Lamont said. “I’ve got to make sure that the prediction markets don’t play games with us as well.”
A specific concern for state officials is the possibility of student-athletes betting on sports in which they participate. Lamont questioned whether athletes should be able to wager on their own sports through prediction markets and said Connecticut would not allow that activity.
State officials also say some prediction markets have accepted wagers from people who would not be permitted to use Connecticut’s regulated sports betting system.
According to the Department of Consumer Protection, this includes people under 21 and individuals on the state’s voluntary self-exclusion list. The state also says the platforms offer contracts involving Connecticut college sports, which is prohibited under state law.
More Than Nine Operators
The Department of Consumer Protection has issued subpoenas to nine gaming service licensees and 15 media organizations that officials say may have information relevant to the investigation.
The businesses and media organizations receiving subpoenas are not themselves under investigation, according to the state.
Lamont has also defended Connecticut’s current sports betting framework, explaining that the state’s intention was to create a regulated market rather than leave consumers exposed to platforms operating outside its rules.
The state’s legal sports betting market currently includes DraftKings through Foxwoods, FanDuel through Mohegan Sun, and Fanatics through the Connecticut Lottery.
The latest crackdown follows Connecticut’s earlier legal action against Kalshi and adds to the wider US debate over whether sports prediction contracts should be treated as financial products or as sports betting.