Connecticut sues Kalshi over unlicensed sports event contracts
Connecticut has sued Kalshi and asked a court to block the prediction market platform from offering sports event contracts that state officials classify as unlicensed sports wagering. The Connecticut Attorney Generals Office said Wednesday that Attorney General William Tong, Department of Consumer Protection Commissioner Bryan T. Cafferelli, and Governor Ned Lamont are seeking an injunction requiring Kalshi to stop offering the contracts in the state. Connecticut officials have maintained that contracts tied to the outcome of sporting events fall under state gambling laws even though Kalshi operates as a federally regulated derivatives exchange. The lawsuit extends a dispute that began in December 2025 and is now being litigated alongside separate federal proceedings involving the Commodity Futures Trading Commission. “Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticuts commonsense consumer protection laws,” Tong said. State officials said Kalshi has continued offering sports markets without holding the licenses required of Connecticut sportsbook operators. The state legalized sports wagering in 2021 through a system that subjects licensed operators to consumer protection, age verification and other regulatory requirements. Lamont said prediction market operators should not be allowed to operate outside the regulatory structure established for licensed sportsbooks. “When we legalized









