Connecticut governor Ned Lamont has announced a series of measures against “illegal” prediction market operations in the state.
Nine cease-and-desist orders and 30 subpoenas have been issued by Connecticut’s Department of Consumer Protection (DCP) relating to prediction market platforms offering sports event contracts in the state.
The governor said businesses that received subpoenas were not under investigation by the DCP but may have information useful to the state’s efforts to prevent prediction markets operating within its territory.
The nine cease-and-desist letters were sent to: Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini and Underdog.
The prediction market platforms have been instructed 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”, or risk facing civil and criminal penalties.
Platforms offering sports event contracts in Connecticut are operating in violation of the state’s gaming and trade practice laws, according to Lamont. Connecticut currently has three licensed sportsbooks in DraftKings, FanDuel and Fanatics.
The governor accused the prediction market operators of offering services to prohibited bettors, voluntarily self-excluded people and people under the age of 21.
The platforms also provide access to contracts on collegiate sports outcomes, which is illegal in the Constitution State.
Towards the end of August, Connecticut sued Kalshi and sought an injunction to prevent it from operating in the state. A federal judge in Connecticut also deemed sports event contracts illegal and unprotected by commodities law.
The world’s largest prediction markets platform has suffered several legal setbacks in recent weeks, including a $36bn lawsuit from New York and a Ninth Circuit ruling granting Nevada authority over event contracts.
Lamont said: “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.
“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 their activities are legal.
“When we legalised sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers, not to open a free-for-all.”
The post Connecticut ramps up prediction markets clampdown with nine cease-and-desist orders first appeared on EGR Intel.
Governor Ned Lamont says sports event contract operators are flouting state gaming laws, as state targets Polymarket, Robinhood, Underdog and others
The post Connecticut ramps up prediction markets clampdown with nine cease-and-desist orders first appeared on EGR Intel.