Connecticut orders nine prediction markets to cease sports contract trading

Connecticut state officials have issued cease-and-desist orders to nine prediction market exchanges, ordering them to immediately stop offering or promoting sports event contracts to state residents. The crackdown, led by Governor Ned Lamont, Attorney General William Tong, and the Department of Consumer Protection, targets platforms including Polymarket, Coinbase, Robinhood, Gemini, and Webull.

State authorities argue that these prediction markets are operating as unlicensed sports wagering platforms in violation of Connecticut’s gaming laws and consumer protection standards. Officials stated that while these platforms claim to be legal, they do not adhere to the regulations established when the state legalized sports wagering in 2021. Failure to comply with the orders may result in civil penalties under the Connecticut Unfair Trade Practices Act or criminal penalties.

In addition to the cease-and-desist orders, the Department of Consumer Protection issued nearly 30 subpoenas to payment processors, app stores, and local media outlets. These subpoenas are intended to gather information pertinent to the state’s investigation into illegal prediction market operations. The administration emphasized that the move aims to protect consumers, particularly young people and those with gambling addictions, from unregulated markets.