Connecticut has ordered nine prediction-market companies, including Polymarket, Coinbase, and Robinhood, to halt their services in the state, stepping up its efforts to regulate the digital gambling industry.
Governor Ned Lamont and the Connecticut Department of Consumer Protection issued cease-and-desist notices to those companies, in which they instructed them to stop advertising their platforms to customers in Connecticut. Cease-and-desist orders were issued to Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict.
If they do not comply with this order, they could face financial penalties under the Connecticut Unfair Trade Practices Act or be subject to prosecution for violations of state laws.
Governor Lamont said:
Prediction markets have branded themselves as legal and safe, but the reality is they are not adhering to Connecticut’s consumer protection standards and gaming laws, and they are not being truthful when they tell consumers that their activities are legal. When we legalised sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers, not to open a free-for-all.
State authorities also raised issues related to the contracts related to college sports, with the state citing the American Gaming Association’s valuation of wagered amounts in the NFL games via prediction market being targeted to hit $40 billion this year. In addition, the authorities mentioned that one company reported a college football trading volume of about $250 million just on the first day of services.
Diana Goode, executive director of the Connecticut Council on Problem Gambling, said:
We support the state’s efforts, including seeking judicial remedies, when necessary, to preserve the integrity of Connecticut’s regulatory system and ensure that innovation or new terminology is never used to circumvent the protections Connecticut residents deserve.
The new enforcement actions were taken after Connecticut sued Kalshi to prevent the prediction market player from providing any kind of sports contracts without a license.