Share 
Connecticut’s crackdown on sports prediction markets is gaining momentum as Webull prepares to discontinue its sports-related event contracts in the state. The move follows similar withdrawals by other operators and comes as Google’s advertising ban further limits how prediction market companies can reach Connecticut consumers.
Webull has instructed Connecticut customers with open sports event contracts to close their positions by 11:59 p.m. ET on Oct. 31, 2026. Separately, Google’s ban on advertising prediction market contracts and related products in the state took effect Oct. 7.
The developments add pressure to an industry facing regulatory challenges across the United States. Connecticut officials maintain that sports event contracts offered by unlicensed platforms violate state gambling laws, while some operators argue that federally regulated derivatives markets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).
Webull sets Oct. 31 deadline for Connecticut customers
Webull notified affected customers that they must liquidate their open sports-related event contracts by Oct. 31. The company’s decision follows enforcement action by Connecticut’s Department of Consumer Protection (DCP), which has targeted platforms accused of offering unlicensed sports wagering.
According to CTPost’s report on Webull’s withdrawal, the company is the latest operator to respond to the state’s crackdown. ProphetX and Gemini have also agreed to discontinue their sports prediction market services in Connecticut.
The change applies specifically to sports-related event contracts, not Webull’s broader investment services. The company previously said it intended to comply with the state’s order while continuing discussions with regulators.
Connecticut officials argue that these products allow customers to wager on sporting outcomes without the protections required of licensed sportsbooks. The DCP has raised concerns about alleged wagers by people younger than 21, contracts involving Connecticut college sports and potential access by people who have voluntarily excluded themselves from gambling.
The affected operators dispute aspects of the state’s position, arguing that their products operate under a different regulatory framework.
Google bans prediction market ads in Connecticut
Google introduced a separate restriction on Oct. 7, prohibiting advertisements for prediction market contracts and related products in Connecticut.
The company confirmed the effective date in its official October 2026 advertising policy update. The restriction makes Connecticut the fifth state excluded from Google’s prediction market advertising program, joining Michigan, Nevada, New York and Ohio, according to PPC Land’s report.
The ban removes a major digital advertising channel for prediction market operators seeking to reach consumers in Connecticut. It also brings Google’s advertising rules in line with the state’s increasingly restrictive stance toward sports-related event contracts.
DCP Commissioner Bryan T. Cafferelli welcomed Google’s decision, saying it would help prevent unlicensed operators from targeting Connecticut consumers with products that do not meet the state’s consumer protection requirements.
The policy applies to advertising for prediction market contracts and related products. It is separate from the state’s enforcement actions against individual operators.
Connecticut targets nine prediction market companies
The latest developments follow enforcement measures announced by Gov. Ned Lamont and the DCP on Sept. 10. State regulators issued cease-and-desist orders to nine companies accused of offering unlicensed sports wagering. The companies were:
- Webull
- Gemini
- ProphetX
- Polymarket
- Crypto.com
- Coinbase
- Robinhood
- Novig
- Underdog Predict
The orders directed the platforms to stop advertising, promoting or making available sports event contracts and other forms of alleged unlicensed online gambling to Connecticut residents. The department also issued nearly 30 subpoenas to businesses and media organizations seeking information relevant to its investigation.
Receiving a subpoena did not necessarily mean an organization was itself under investigation.
Connecticut limits legal sports wagering to authorized operators working through the state’s tribal casinos and lottery. The available online sportsbooks are DraftKings through Foxwoods, FanDuel through Mohegan Sun and Fanatics through the Connecticut Lottery.
State officials say the restrictions are intended to preserve safeguards that licensed operators must follow. These include age requirements, restrictions on certain college sports wagers and protections for people who have voluntarily excluded themselves from gambling.
Prediction markets face a wider regulatory fight
Connecticut’s actions are part of a broader national dispute over whether sports-related prediction markets fall under state gambling laws or federal commodities regulation.
Prediction markets generally allow users to buy and sell contracts tied to the outcome of future events. Operators argue that contracts listed through federally regulated exchanges fall under the CFTC’s authority and should not be treated as conventional sports wagers.
Robinhood and Coinbase are among the companies that have challenged Connecticut’s regulatory position. Their arguments center on the scope of federal oversight and whether state gambling restrictions can be applied to federally regulated event contracts.
Connecticut, meanwhile, maintains that contracts tied to sporting outcomes can constitute unlicensed gambling when offered to state residents without the required authorization.
The dispute has created uncertainty for operators seeking to offer sports event contracts nationwide. Court decisions in Connecticut and other states could help clarify the boundaries between federal derivatives regulation and state gambling laws.
Connecticut crackdown adds pressure on operators
Webull’s planned withdrawal and Google’s advertising ban represent two distinct challenges for prediction market operators in Connecticut: restrictions on offering sports event contracts and limits on promoting those products to state residents.
Although some companies continue to contest state authority, the developments show that Connecticut’s enforcement campaign is already affecting how the industry operates. The central legal question — whether federal commodities regulation overrides state gambling restrictions for sports event contracts — remains unresolved.
