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State of Play’s TL;DR
- Connecticut regulators issued cease-and-desist orders to nine prediction market companies.
- They say sports event contracts offered to residents violate state gaming laws.
Connecticut regulators have ordered nine prediction market companies to stop offering or promoting sports event contracts to residents, arguing those products amount to illegal sports wagering under state law.
The move adds to the growing regulatory fight over whether prediction markets can offer sports-related contracts outside traditional sportsbook rules.
Connecticut’s Department of Consumer Protection (DCP) said the companies are operating in violation of state gaming laws and the Connecticut Unfair Trade Practices Act. The state also said customers must be allowed to withdraw any money held on those platforms.
Connecticut says sports-related prediction markets break state betting rules
According to the DCP, Connecticut has a regulated sports betting system in which DraftKings Sportsbook, FanDuel Sportsbook, and Fanatics Sportsbook are licensed to operate. State law also bars wagering on Connecticut college teams.
Some prediction market platforms can offer sports wagers outside those restrictions, including to people under 21 and to individuals who have excluded themselves from gambling, said DCP Commissioner Bryan Cafferelli.
“Prediction markets offering sports wagers in CT are operating in violation of CT gaming laws and in violation of CT unfair practices law.”
The state named Polymarket, Coinbase, Robinhood, and Underdog Predict among the companies receiving cease-and-desist orders. It said nine companies in total were ordered to stop offering or promoting sports event contracts to Connecticut residents.
State issues nearly 30 subpoenas as investigation widens
Connecticut also issued nearly 30 subpoenas to gaming service providers, media organizations, and other businesses it said may have information relevant to the investigation. DCP said those recipients are not themselves under investigation.
WFSB reported it was among the media organizations that received a subpoena.
Cafferelli also pointed to the size of the market.
“On the first day of the 2026 collegiate football season, one prediction market reported nearly $250 million in trading volume in college football. And the dollars show the youth is clearly at risk.”
Josh Shuart, chair of sports management at Sacred Heart University, told WFSB younger people are especially vulnerable, saying they may get involved without fully understanding the consequences.
Based on reporting by Cierra Jordan for WFSB.
