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- Connecticut issued nine cease-and-desist orders and 30 subpoenas to prediction markets for illegal sports betting.
- Officials claim these unlicensed platforms illegally accepted wagers from underage users and on restricted college sports.
Connecticut’s Department of Consumer Protection has issued nine cease-and-desist orders to prediction market companies it says are illegally offering sports betting in the state.
The action expands Connecticut’s push against sports event contracts that state officials say fall outside its licensed wagering system. Regulators also sent nearly 30 subpoenas to gaming service providers, media companies, app stores, and payment firms as part of the investigation.
The cease-and-desist orders name Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict. According to the state, those companies must stop advertising, offering, promoting, or otherwise making available sports event contracts or other unlicensed online gambling to Connecticut residents. The department also ordered the platforms to let Connecticut customers withdraw funds currently held on the platforms.
Consumer Protection Commissioner Bryan T. Cafferelli said Connecticut law permits sports betting only through legal, licensed sportsbooks that meet state rules and technical standards. Gov. Ned Lamont said prediction markets have presented themselves as legal and safe but are not complying with Connecticut consumer protection standards and gaming laws.
State says underage and excluded bettors could access markets
State officials said the platforms are known to offer and accept wagers from prohibited bettors, including people under 21 and people on Connecticut’s voluntary self-exclusion list. They also said the markets offered wagers on Connecticut college sports, which is prohibited under state law.
Connecticut said legal sports wagering in the state is limited to DraftKings through Foxwoods, FanDuel through Mohegan Sun, and Fanatics through the Connecticut Lottery.
The subpoenas went to 9 licensees and 15 media organizations, plus app stores and non-licensed payment processors. Subpoena recipients included PayPal, Plaid, Socure, Apple App Store, Google Play, Apple Pay, Google Wallet, and Stripe, among others. State officials said those recipients may have information relevant to the investigation and are not themselves under investigation.
Federal ruling adds to Connecticut’s case against sports event contracts
The latest enforcement step comes after Connecticut previously sued Kalshi and sought an injunction to block it from offering what the state called unlicensed sports wagers. In August, a federal judge in Connecticut ruled that sports event contracts are illegal unlicensed gambling and are not protected by federal commodities law.
That ruling could strengthen the state’s position as it presses prediction market operators to leave the market, though the source article did not say whether an appeal is planned.
Connecticut legalized sports wagering in 2021. The minimum age for online or in-person gaming or sports betting is 21, while fantasy contests are open to players 18 and older.
For gambling-related concerns, the state said consumers can contact the Problem Gambling Helpline at 1-888-789-777 or email DCP.Gaming@ct.gov.
Source: As reported by ctnewsjunkie.com.
