Connecticut sues Kalshi over sports contracts offered without state gambling license

The state of Connecticut has filed a lawsuit against Kalshi, a prediction market operator, seeking an injunction to halt the company's offering of sports contracts to Connecticut residents without a gambling license. Attorney General William Tong, along with Department of Consumer Protection Commissioner Bryan T. Cafferelli and Governor Ned Lamont, announced the lawsuit on Wednesday.

Connecticut aims to obtain a restraining order to prevent Kalshi from continuing to provide contracts that officials deem unlicensed sports betting. The lawsuit marks the latest instance of inconsistent enforcement among states, with officials arguing that Kalshi's sports markets function as wagers and must comply with Connecticut's gambling licensing requirements and consumer safeguards.

Kalshi has been marketing sports contracts through its website, app, and other channels since January 2025 without obtaining a Department of Consumer Protection license. Attorneys General Tong and Cafferelli claim that sports event contracts are no different from sports betting and are subject to Connecticut's consumer protection laws.

The case follows cease-and-desist notices from Connecticut regulators to Kalshi, Robinhood, and Crypto.com in December 2025, accusing the platforms of offering unlicensed online gambling. The state has won every motion for a temporary restraining order or preliminary injunction in state court, and Kalshi's request for a preliminary injunction has been rejected by U.S. District Judge Vernon Oliver.