Prediction Market Firms Halted Operations in Connecticut

State officials have ordered nine companies to stop unauthorized gambling activities across Connecticut.

Updated on Oct. 6, 2026 in Gambling

Prediction Market Firms Halted Operations in Connecticut

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Three prediction market companies ceased operations in Connecticut following enforcement actions by state officials. Authorities issued cease-and-desist orders to nine firms for allegedly violating local wagering laws.

Why it matters

State regulators determined that these platforms were operating without authorization while failing to protect consumers. These actions aim to maintain the integrity of the states gambling landscape and ensure compliance with existing regulations.

Connecticut officials identified nine total companies operating in violation of state laws, with three firms already ceasing activities in October 2026. The state also maintains a gambling exclusion list containing 10,000 names.

The players

Department of Consumer Protection

This is the Connecticut state agency responsible for regulating consumer products and gambling operations.

Kalshi

This is a prediction market firm that is currently facing a lawsuit from the state of Connecticut.

ProphetX

This is one of the prediction market companies that stopped operating in Connecticut.

Gemini

This is a cryptocurrency exchange and platform that halted its prediction market operations in the state.

Webull

This is a financial services company that ceased its prediction market activities in Connecticut.

The details

The Department of Consumer Protection is currently investigating six remaining companies while pursuing legal action against Kalshi. Officials allege these platforms targeted people on the state self-exclusion list, allowed underage gambling, and accepted bets on Connecticut college games.

The General Assembly approved state sports gambling in 2021.
Officials announced the nine operators were violating state laws on September 10, 2026.
Three companies stopped operating in Connecticut in October 2026.
The Department of Consumer Protection issued cease-and-desist orders to Kalshi in December.

Culture Shift

This enforcement action marks an aggressive effort by regulators to align the expanding prediction market sector with the strict oversight standards set by the 2021 sports betting law. It highlights a growing friction between innovative wagering technologies and legacy state regulatory frameworks.

Residents should be aware that these platforms are currently unauthorized to operate in Connecticut and may not provide standard consumer protections. Individuals on the state gambling exclusion list should ensure their accounts are closed with any similar services to maintain their self-exclusion status.

The takeaway

The state's move signals a tightening environment for digital prediction markets attempting to operate without local licensure. Consumers are encouraged to verify that any betting platform they use is registered and compliant with Connecticut authorities.