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Connecticut orders nine prediction market platforms to stop taking sports bets

State consumer protection regulators issued cease-and-desist orders to Polymarket, Robinhood, Coinbase and six other companies, along with nearly 30 subpoenas to licensees, payment processors and news organizations.

Connecticut regulators have ordered nine online prediction market companies to stop offering sports wagers to state residents, Gov. Ned Lamont and the state Department of Consumer Protection said Thursday.

The cease-and-desist orders went to Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog Predict, according to the department. Each was ordered to immediately stop advertising, offering or promoting "sports event contracts" or any other form of unlicensed online gambling in Connecticut, and to allow Connecticut customers to withdraw money the platforms are holding.

The department also issued nearly 30 subpoenas — to nine companies licensed as gaming service providers, including PayPal, Plaid and LexisNexis; to 15 media organizations, among them Hearst Connecticut Media, The Hartford Courant, ESPN and iHeartMedia; and to app stores and payment processors including the Apple App Store, Google Play and Stripe. Businesses that were subpoenaed are not under investigation but may have information relevant to the state's inquiry, the department said.

Prediction markets, which the state describes as peer-to-peer exchanges where users buy and sell "yes" or "no" contracts on the outcome of sporting events, violate Connecticut gaming and unfair trade practices laws, the department said. It said the platforms have taken bets from people under 21 and from people on the state's voluntary self-exclusion list, and have offered wagers on Connecticut college sports, which state law bars.

Companies that do not comply could face civil penalties under the state's unfair trade practices law or criminal penalties under its gaming statutes, the department said.

Connecticut has also sued Kalshi, seeking a court order blocking it from offering unlicensed sports wagers in the state. A federal judge in Connecticut ruled in August that sports event contracts are illegal unlicensed gambling and are not protected by federal commodities law.

Three platforms are licensed to offer sports wagering in Connecticut: DraftKings, FanDuel and Fanatics.

This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.

Connecticut