- Connecticut AG William Tong, Governor Ned Lamont, and Department of Consumer Protection Commissioner Bryan T. Cafferelli filed suit against Kalshi, alleging the company offered sports wagers in Connecticut without the required state license. The state is seeking a court injunction to prohibit Kalshi from continuing to offer online betting access.
- The lawsuit follows a December 2025 order from the Department of Consumer Protection Gaming Division (DCP) ordering Kalshi, along with two other sites, to cease and desist conducting unlicensed online gambling, specifically sports wagering. Additionally, Kalshi was 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 and required the platform to permit residents to withdraw any funds currently held by the platform.
- Kalshi responded to the order by filing its own lawsuit against the state and seeking a preliminary injunction to prevent the state from enforcing the cease and desist order, arguing as it has in other cases that prediction contracts qualify as “swaps” and therefore fall under the exclusive jurisdiction of the federal Commodity Futures Trading Commission (CFTC).
- Earlier this month, United States District Judge Vernon Oliver denied Kalshi’s motion, which Kalshi has appealed this to the Second Circuit Court of Appeals. CFTC has also sued Connecticut and two other states, arguing that the prediction market should be regulated solely by the federal government.