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- Connecticut orders Kalshi to stop unlicensed sports betting through event contracts.
- Kalshi defends its operations, claiming federal oversight, not state regulation.
- Despite legal battles, Kalshi partners with CNN for real-time prediction data.
Connecticut has ordered Kalshi, a popular prediction market platform, to stop offering unlicensed sports betting through event contracts. The state’s Department of Consumer Protection (DCP) issued a cease-and-desist letter on December 3. The order also affects platforms like Robinhood and Crypto.com, accusing them of conducting illegal online gambling through their services.
The DCP asserts that these firms are in breach of the state laws by providing sports betting without the necessary licensing. As explained by DCP Commissioner Bryan Cafferelli, the platforms are not subject to the regulation of Connecticut.
Connecticut Gaming Director Accuses Kalshi of Misleading Consumers
Kris Gilman, who serves as the Gaming Director at the DCP, further claimed that the platforms were deceiving consumers with false advertisements. He cautioned that such unauthorized sites are dangerous to the parties who operate them, since they offer no safeguards on money and personal information.
Kalshi is not alone in Connecticut in his legal troubles. The state of New York also issued a similar cease-and-desist order to the platform in October 2025. In September, Massachusetts also initiated a lawsuit against Kalshi, claiming that he was providing illegal gambling services.
The increasing popularity of prediction markets, drawing billions of investments in 2025, has resulted in the rise of interest in the state regulators.
Also Read: Kalshi Partners with CNN, Raises $1B to Lead in Prediction Markets
Kalshi Challenges Connecticut’s Action, Claims CFTC Oversight
Kalshi is also protecting itself despite the legal hurdles. The platform claims to be a nationwide, regulated marketplace of real-world events. Kalshi states that its services are not similar to state-controlled sportsbooks and casinos. The company feels secure about its legal position and has already initiated an action in federal court in response to Connecticut’s order.
According to Kalshi, its sports event contracts do not lie under the state regulation but rather under the regulatory authority of the Commodity Futures Trading Commission (CFTC). According to the filing made by the platform on Dec 4, the services that it offers are not illegal under federal law, and the actions of Connecticut would violate federal control.
The court battles that Kalshi has faced have not halted its rise. The platform has recently collaborated with CNN to offer real-time prediction data in the digital, TV, and social media outlets of the network. In spite of the legal challenge, the influence of Kalshi is on the rise.
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