Governor Lamont Announces New Actions Against Illegal Prediction Markets Offering Sports Wagers in Connecticut

State Issues Nine Cease-And-Desists, Nearly 30 Subpoenas Related To Illegal Prediction Market Activity in Connecticut

(HARTFORD, CT) - Governor Ned Lamont and Connecticut Consumer Protection Commissioner Bryan T. Cafferelli today announced that the State of Connecticut is taking a series of actions aimed at curbing illegal prediction market operations in Connecticut.

This week, the Connecticut Department of Consumer Protection (DCP) issued nine cease-and-desist orders to companies illegally operating prediction markets in the state. Additionally, DCP issued nearly 30 subpoenas to gaming service provider license holders and Connecticut media outlets. Businesses that received subpoenas are not under investigation by the department but may possess information pertinent to the state's investigation into illegal prediction market operations in Connecticut.

"Connecticut has been at the forefront of this issue, leading the way in protecting consumers-including young people, student athletes, and those suffering from gambling addiction-from unregulated gambling markets, which put your money and information at risk," 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 legalized sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers, not to open a free-for-all."

"Our laws are clear: sports betting may only be offered by legal, licensed sportsbooks that adhere to our regulations and technical standards," Commissioner Cafferelli said. "We are, first and foremost a consumer protection agency, and we will continue to do everything we can to protect all Connecticut consumers from misleading business practices that compromise their health and safety, personal information and hard-earned money."

The American Gaming Association estimates $40 billion will be wagered on the NFL using prediction markets this year. On the first day of the 2026 college football season last week, one prediction market reported nearly $250 million in trading volume on college football alone.

"Gambling is a form of entertainment for many, but it is important to remember that all gambling carries risk, and for some, that risk can become a serious problem," Nancy Navarretta, commissioner of the Connecticut Department of Mental Health and Addiction Services (DMHAS), said. "DMHAS offers a statewide network of prevention, treatment, and recovery services for individuals and families affected by gambling harm. Anyone concerned about their own gambling, or worried about someone they love, can call the Problem Gambling Helpline at 1-888-789-7777 and connect with support."

"Connecticut has worked hard to establish a strong regulatory framework that includes meaningful consumer protections, safeguards for young people, responsible gambling requirements and access to resources for those who may experience harm," Diana Goode, executive director of the Connecticut Council on Problem Gambling, said. "We commend Governor Lamont, Commissioner Cafferelli and the Department of Consumer Protection for their continued efforts to ensure that organizations offering gambling opportunities to Connecticut residents are held to those standards. When organizations operate outside that framework, critical protections can be lost. 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."

A sports prediction market is a peer-to-peer exchange where users buy and sell "yes" or "no" contracts on the outcome of sporting events. Prediction markets offering sports wagers in Connecticut are operating in violation of Connecticut gaming and unfair trade practices laws. They are known to offer and accept wagers from prohibited bettors, including people under the legal betting age of 21 and who appear on the state's voluntary self-exclusion list. They also offer wagers on Connecticut collegiate sports, which is expressly prohibited under Connecticut law to protect college athletes from influence and harassment.

DCP issued cease-and-desist orders to nine prediction markets known to be operating illegally in Connecticut, including:

• Polymarket
• Coinbase
• Crypto.com
• Robinhood
• ProphetX
• Novig
• Webull
• Gemini
• Underdog Predict

All nine platforms are ordered to immediately cease and desist advertising, offering, promoting, or otherwise making available "sports event contracts" or any other form of unlicensed online gambling to Connecticut residents. DCP also ordered all three platforms to allow Connecticut residents to withdraw any funds currently held by the platforms.

Failure to comply may result in additional action including, but not limited to, civil penalties under the Connecticut Unfair Trade Practices Act and/or criminal penalties for violations of Connecticut's gaming statutes.

Subpoenas issued to licensees, media organizations, and others

Additionally, DCP issued subpoenas to any businesses that may have information pertinent to the state's investigation into the operations of predictions markets. Subpoenas have been issued to a total of 9 licensees and 15 media organizations. Businesses that received subpoenas are not under investigation by the department.

Licensees that received subpoenas include:

• PayPal - a payment processing app licensed as a gaming service provider
• LexisNexis - a service that assists with know-your-customer information, licensed as a gaming service provider
• Plaid - a payment processing app licensed as a gaming service provider
• Paysafecard - a payment processing app licensed as a gaming service provider
• Integrity Compliance 360 - a compliance technology and advisory platform specializing in integrity and regulatory technology, licensed as a gaming service provider
• SportRadar Solutions - a sports technology company licensed as a gaming service provider
• Genius Sports Media - a sports technology company licensed as a gaming service provider
• Genius Tech International - sports technology and data analytics firm licensed as a gaming service provider
• Socure Inc. - an identity verification platform licensed as a gaming service provider

Media organizations that received subpoenas include:

• Hearst Connecticut Media
• The Hartford Courant
• Connecticut News Project
• Norwich Bulletin
• The Patch
• The Day
• ESPN
• Fox61/Tegna Broadcast
• NBC Connecticut
• WFSB/Gray Media
• WTNH/WCTX Nexstar Media
• Audacy, Inc.
• Connoisseur Media
• iHeartMedia
• Red Wolf Broadcasting

App stores and non-licensed payment processing organizations that received subpoenas include:

• Apple App Store
• Google Play
• Apple Pay
• Google Wallet
• Stripe

Earlier this month, Connecticut sued Kalshi, the largest prediction market operator, and sought a court injunction to block the online betting site from offering unlicensed sports wagers in Connecticut.

A federal judge in Connecticut ruled in August that sports event contracts are illegal unlicensed gambling and are not protected by federal commodities law.

In Connecticut, the three gaming platforms licensed to offer sports wagering are Draft Kings (Foxwoods), FanDuel (Mohegan Sun), and Fanatics (Connecticut Lottery). Participants must be at least 21 years old to engage in online or in-person gaming or sports wagering. For fantasy contests, participants must be at least 18 years old.

Consumers can report gaming-related concerns to DCP by emailing [email protected].

Anyone in Connecticut seeking resources and support for problem gambling-whether it is for themselves or someone they know-are encouraged to call the Connecticut Council on Problem Gaming's 24/7 confidential Problem Gambling Helpline at 1-888-789-7777 or visit ccpg.org.

Information on services available in Connecticut for those who may have a gambling problem is also available at portal.ct.gov/problemgaming. To learn about Connecticut's gaming self-exclusion program and how to enroll, visit ct.gov/selfexclusion.

Copies of the cease-and-desist letters and subpoenas are available upon request to DCP. Requests for these documents may be submitted online via the DCP GovQA portal.