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Two pieces of legislation signed by Gov. Ned Lamont last month are reshaping how Connecticut governs its sports betting market.
Taken together, the laws impose felony penalties for match-fixing, place new obligations on operators, and direct the state to study prediction markets.
Lamont signed HB 5529 on May 19 and SB 296 this week after both bills cleared the Connecticut General Assembly.
Felony charges for betting manipulation
Until now, Connecticut’s cheating statute had no specific provisions for sports betting. The law dates to 1998, well before legal wagering was part of the state’s landscape. Senate Bill 296 closes that gap.
The updated statute formally brings match fixing, insider collusion, and the improper use of confidential information into the definition of criminal cheating. Coverage now includes sports wagering, casino gaming, lottery drawings, and parimutuel racing.
Convicted offenders could face a prison term of up to five years, a fine of $5,000, or both. The provision becomes enforceable starting Oct. 1.
Sportsbook operators must create helpline
House Bill 5529 targets how companies communicate with customers. Sportsbooks operating in Connecticut must now provide a toll-free phone number for support rather than directing bettors exclusively to chat-based tools. Companies have until July 1 to have the line running.
The bill also restricts sports betting advertising on college campuses to protect younger audiences.
One item in the bill, however, did not survive the legislative process. The clause would have prevented operators from allowing customers to reverse a withdrawal request once it had been submitted.
FanDuel’s Michael Ventre submitted testimony opposing the measure, arguing that a customer pulling back a withdrawal does not automatically indicate a gambling problem. He wrote that there is no evidence linking this behavior to harmful conduct and that customers should have the right to manage their own money without the state treating them as at-risk individuals.
Connecticut to examine prediction markets
HB 5529 also sets up a government-led investigation into prediction markets and their effects on Connecticut residents. The Commission of Consumer Protection will lead the effort in coordination with the state attorney general, the Connecticut Lottery Corporation, and the two tribal gaming entities operating in the state.
A final report is due in February 2027.
The review will look at whether people under 21 are accessing these products, how they are being marketed to young users, and whether their growth is tied to increased problem gambling. The study will also evaluate what financial consequences prediction markets carry for licensed gambling operators and for the state’s tax base.
Connecticut already has a contentious history with prediction market companies. The state sent cease-and-desist letters to Kalshi, Crypto.com, and Robinhood earlier this year, directing each to halt what officials characterized as unlicensed sports betting.
Kalshi challenged that action in court. In April, the federal CFTC also filed suit against Connecticut and several other states as part of its effort to establish federal authority over the sector.
Blumenthal keeps pressure on industry
US Sen. Richard Blumenthal has made responsible gambling legislation one of his priorities in Washington, D.C. He has introduced multiple bills aimed at setting stronger national standards for the industry.
At a recent visit to Sacred Heart University, where a poll on sports betting harms had just been released, Blumenthal addressed the tactics operators use to keep bettors engaged.
“My advice to everyone, especially young people, is to learn more about the industry and how their technology and tactics are designed to exploit weaknesses. In seconds, they can promote and pitch another bet, especially if people are losing. They don’t want more bets from winners. They want to promote bets to people who are losing.”
Lawmaker changes her views
Representative Maria Horn played a central role in passing Connecticut’s original sports betting framework. Her position has changed since then.
In recent comments to local media, Horn expressed doubt about whether the law ultimately served Connecticut well.
“I am concerned. I’m concerned about what it is doing to sports, about young people betting, and the increasing blurring between this and prediction markets.”
Her reservations, as reported by Legal Sports Reports, add a notable voice to a several other officials now questioning the social cost of legalized sports wagering in the state.
