Harsh Measures: Connecticut Asks 9 Prediction Markets to Stop Sports Bets

Connecticut has told nine prediction-market companies to stop offering sports event contracts to people in the US state, a move that could cut off a growing alternative to traditional sportsbook betting for local players.

The Connecticut Department of Consumer Protection issued cease-and-desist orders to Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict. State officials say the companies are operating illegally in Connecticut by offering sports wagers without the licenses required under state law.

Regulators said they’re concerned about how fast these platforms are expanding and who could be harmed by easy access to sports betting-style products. The state flagged risks to young people, student-athletes and vulnerable gamblers, and specifically raised the issue of athletes potentially betting on sports they participate in. Governor Ned Lamont said Connecticut built safeguards into its 2021 sports betting legalization, warning that “we’re putting our kids at risk” if prediction markets bypass those protections.

Connecticut also alleges some prediction markets have taken wagers from people who would not be allowed in the state’s regulated sports betting system, including people under 21 and individuals on the state’s voluntary self-exclusion list. Officials further claim the platforms have offered contracts tied to Connecticut college sports, which the state says is prohibited.

The crackdown comes as prediction markets continue to post eye-catching volumes. The American Gaming Association estimates about $40 billion will be wagered on the National Football League via prediction markets this year, and one platform reported nearly $250 million in trading volume on college football on the first day of the 2026 college football season.

Connecticut says it is trying to preserve a regulated sports betting market that currently includes DraftKings through Foxwoods, FanDuel through Mohegan Sun, and Fanatics through the Connecticut Lottery. The Department of Consumer Protection has also issued subpoenas to nine gaming service licensees and 15 media organizations for information relevant to the investigation, while stating those recipients are not themselves under investigation. The state’s latest action follows earlier legal steps against Kalshi and lands in the broader US dispute over whether sports prediction contracts should be treated like financial products or like sports betting.