Underdog asks court to curb Connecticut’s prediction-market crackdown
The Underdog lawsuit asks a federal court to block Connecticut gaming rules and settle who regulates sports-event prediction contracts. The post Underdog asks court to curb Connecticut’s prediction-market crackdown appeared first on ReadWrite .
A Connecticut-based prediction market company has filed a federal lawsuit against state officials, seeking to limit the state's authority to regulate its event contracts. The lawsuit, filed in the U.S. District Court for the District of Connecticut, challenges a cease-and-desist order issued by the Connecticut Department of Consumer Protection (DCP) and Attorney General William Tong.
The DCP listed nine firms, including Underdog, that were ordered to stop advertising sports-event contracts and withdraw existing funds from Connecticut users. Underdog's legal team argues that the state cannot regulate its prediction markets under Connecticut gaming laws, as the contracts are traded on federally regulated designated contract markets overseen by the Commodity Futures Trading Commission (CFTC).
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