Connecticut sues Kalshi over sports contracts in months-long legal fight

Connecticut sued Kalshi to stop it from offering sports event contracts. Connecticut Attorney General William Tong is seeking a court injunction against what the state identifies as unlicensed sports wagers. Tong said the contracts are not shielded from Connecticut's consumer protection laws. Governor Ned Lamont said Kalshi's prediction markets put Connecticut consumers and young people at serious risk. Kalshi's head of litigation, Jovy Dedaj, called Connecticut's action arbitrary and inconsistent. Dedaj said the state allows other prediction markets to operate there. In December 2025, Connecticut's Department of Consumer Protection ordered Kalshi, Robinhood, and Crypto.com to stop promoting and offering sports event contracts. Kalshi sued state officials the following day. Kalshi argued that its markets are regulated derivatives products overseen by the Commodity Futures Trading Commission. Kalshi received designated contract market status from the CFTC in 2020. Kalshi claims that Connecticut's gambling laws therefore do not apply and that the state exceeded its authority. Earlier this month, Judge Vernon Oliver denied Kalshi's motion for a preliminary injunction against state enforcement. Kalshi has appealed that decision to the Second Circuit. In April, the CFTC sued Connecticut, Arizona, and Illinois. The CFTC argued that the states cannot outlaw CFTC-registered designated contract markets. CFTC Chair Michael Selig said the agency would defend its exclusive regulatory authority over the markets. More than a dozen states have taken enforcement action or filed lawsuits against Kalshi over sports event contracts. Earlier this month, a Washington court ordered Kalshi to stop offering prediction markets related to sports, elections, politics, entertainment, culture, technology, and science in the state. Baltimore sued Kalshi and Polymarket this month. Baltimore alleged that their sports event contracts amount to illegal gambling.