Separately, in April, the CFTC sued Connecticut, Arizona, and Illinois
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"The CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators," CFTC Chair Michael Selig said at the time.
Key facts
In December 2025, Connecticut's Department of Consumer Protection ordered Kalshi, Robinhood, and Crypto.com to stop promoting and offering sports event contracts
Because the CFTC granted Kalshi designated contract market status in 2020, the company claims that Connecticut's gambling laws do not apply and that the state is overstepping its authority
Separately, in April, the CFTC sued Connecticut, Arizona, and Illinois, arguing that the states can't outlaw CFTC-registered designated contract markets
The CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators," CFTC Chair Michael Selig said
Summary
Connecticut has sued Kalshi to block the platform from offering sports-related event contracts, escalating the state's months-long legal fight against the prediction markets platform. Released Wednesday, Connecticut Attorney General William Tong said the state is seeking a court injunction requiring it to cease offering what it identifies as unlicensed sports wagers. "Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticut's commonsense consumer protection laws," said Tong. Connecticut Governor Ned Lamont said that Kalshi's prediction markets put the state's consumers and young people at serious risk. "When we legalized sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers, not to open a free-for-all on sports betting," Lamont added.