Connecticut officials are moving swiftly to curb prediction‑market platforms that they say operate outside state law. The Connecticut Department of Consumer Protection (CT DCP) announced that it has sent cease‑and‑desist letters to nine companies, among them Robinhood, Polymarket and Coinbase, accusing them of running illegal prediction markets within the Constitution State.
State law cited as the basis for enforcement
According to the department, the targeted platforms allow users to place wagers on the outcomes of sporting events, a practice that falls under Connecticut’s gaming and unfair‑practice statutes. The law prohibits individuals under age 21 from participating and bars wagering on state collegiate sports. Consumer Protection Commissioner Bryan Cafferelli said, “These platforms are indistinguishable from sports wagering, except they lack consumer protections and fail to adhere to our laws, regulations, or technical standards.”
Federal regulators versus state authority
Representatives for Robinhood, Polymarket and Coinbase told NBC Connecticut that prediction markets are regulated at the federal level, not by individual states. Nonetheless, CT DCP maintains that state law still applies when the activity takes place within Connecticut’s borders, and it is prepared to enforce those statutes.
Subpoenas issued to gather information
In addition to the cease‑and‑desist letters, the department disclosed that it has issued nearly 30 subpoenas to various entities, including media organizations, to obtain information about how the platforms operate and advertise to Connecticut residents. NBC Connecticut was listed among the subpoena recipients, though the agency clarified that the subpoenas do not constitute an investigation of the outlets themselves.
Previous actions and ongoing litigation
This is not the first time Connecticut has taken action against prediction‑market operators. Earlier this year, the state sent similar letters to three other sites, one of which was Kalshi. Kalshi is currently involved in lawsuits with the state, arguing that attempts to block regulated exchanges could drive markets offshore, where they would lack consumer safeguards.
Legal precedent cited
Commissioner Cafferelli referenced a recent district‑court ruling that described prediction markets as “gaming, sports wagering through and through” and affirmed the state’s right to enforce its laws. He added, “We have every right to enforce our laws. So, guess what? We’re enforcing our laws.”
What this means for Connecticut residents
Consumers who have used these platforms should expect the services to be discontinued for Connecticut users unless the companies can demonstrate compliance with state regulations. The department’s actions underscore a broader effort to protect residents—especially younger adults—from unregulated gambling‑type activities that lack the consumer protections found in licensed Connecticut sportsbooks.
Looking ahead
The CT DCP says it will continue to monitor prediction‑market operators and pursue additional enforcement actions as needed. The agency encourages residents to report any suspicious activity and to stay informed about the legal status of online wagering options.
Original reporting: NBC Connecticut — read the source article.
