Press Releases
08/26/2026
Connecticut Sues Kalshi to Stop Illegal, Unlicensed Sports Betting
(Hartford, CT) -- Attorney General William Tong, Department of Consumer Protection Commissioner Bryan T. Cafferelli and Governor Ned Lamont today announced the State of Connecticut has sued Kalshi and is seeking a court injunction to block the online betting site from offering unlicensed sports wagers in Connecticut.
Kalshi is a financial services company offering an online “event contract” exchange platform, offering yes-no propositions about whether future events will occur. Among other contracts, Kalshi offers sports event contracts that resemble sports wagers, including whether a team or player will win a sporting event or series; the number of wins a team will have in a season; league rankings; number of points scored in a match; point spread; and player statistics such as points scored or winning a match by a certain method. This is gambling.
In December 2025, the Department of Consumer Protection Gaming Division ordered Kalshi and two other sites to cease and desist conducting unlicensed online gambling, specifically sports wagering. All three platforms are ordered 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. DCP also ordered all three platforms to allow Connecticut residents to withdraw any funds currently held by the platforms.
Kalshi responded by suing the state, seeking a preliminary injunction against enforcement of Connecticut law, arguing that its prediction contracts are “swaps” regulated solely by the federal Commodity Futures Trade Commission. Earlier this month, United States District Judge Vernon Oliver denied Kalshi’s motion. Kalshi has since appealed to the Second Circuit Court of Appeals.
“Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticut’s commonsense consumer protection laws. These laws exist for a reason—to protect minors, to prevent problem gambling, to ensure your money is safe and your personal information is protected. None of that is happening now on Kalshi, and we’re suing to put a stop to it,” said Attorney General Tong.
“These prediction markets put Connecticut consumers, young people, our student athletes, and those suffering from gambling addiction at serious risk. They have made it clear their goal is profits over people, and that’s why we are holding them accountable," said Gov. Ned Lamont. “When we legalized sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers, not to open a free-for-all on sports betting. We did this in coordination with our tribal partners, recognizing the importance of our government-to-government relationship and acknowledging tribal sovereignty in gaming operations, something we have honored for more than three decades.”
“Our agency has been tracking the evolution of prediction markets from their inception, with great concern for the potential negative impacts on the public,” said DCP Commissioner Bryan T. Cafferelli. “These markets have been waging a coordinated campaign to convince people they are offering investments that are somehow safe when the reality is they are indistinguishable from sports wagering. They target minors and individuals who have purposefully opted out, don’t adhere to any of our technical standards designed to protect consumers money and personal information, and violate all of Connecticut’s gaming laws. Thank you to our team at DCP for their diligent work on this issue, as well as their thoughtful regulation of the Connecticut gaming marketplace. We will continue to pursue anyone operating in violation of Connecticut’s gaming laws because those laws are, first and foremost, designed to protect Connecticut consumers.
Assistant Attorneys General Joseph Gasser and Michael Nunes and Deputy Associate Attorney General Michael Wertheimer, Chief of the Consumer Protection Section are assisting the Attorney General in this matter.
- Twitter: @AGWilliamTong
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Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
Consumer Inquiries:
860-808-5318
attorney.general@ct.gov