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Connecticut seeks injunction to block Kalshi sports event contracts
The case follows a December 2025 order that had told Kalshi, Robinhood, and Crypto.com to stop promoting and offering sports event contracts in the state.
Connecticut has sued Kalshi to block the institutional crypto exchange from offering sports event contracts, escalating a months-long legal fight over whether the platform’s prediction markets should be treated like regulated sports betting. The Block reports that Kalshi Head of Litigation Jovy Dedaj criticized the move as arbitrary and inconsistent enforcement, noting other prediction market platforms continue operating in Connecticut.
Connecticut Attorney General William Tong said the state is seeking a court injunction requiring Kalshi to stop offering what it calls unlicensed sports wagers. Tong argued that sports event contracts are not meaningfully different from sports betting and should not be shielded from Connecticut’s consumer protection laws by federal law.
Connecticut Governor Ned Lamont said the prediction markets create risk for consumers, including young people, and that the state’s 2021 sports wagering legalization was intended to establish a safe, responsibly regulated market. He said federal oversight is necessary, while Dedaj said Kalshi’s approach should fall under the CFTC framework.
Kalshi previously challenged enforcement after the state’s Department of Consumer Protection ordered Kalshi, Robinhood, and Crypto.com in December 2025 to stop promoting and offering sports event contracts. Kalshi argued that its markets, which let users trade on outcomes of future events, are regulated derivatives overseen by the Commodity Futures Trading Commission, citing its designated contract market status in 2020.