The Connecticut Department of Consumer Protection (DCP) has launched an investigation into Kalshi, a prediction markets platform.
Connecticut is now the fourth state to scrutinize Kalshi for facilitating trades on event-based contracts. Previously, gaming authorities in Nevada, New Jersey, and Ohio issued cease-and-desist orders against the company. However, Connecticut’s DCP has not yet taken that step.
Kalshi has been operating sports futures markets across all 50 states since before the Super Bowl. In February, the company notified the Commodity Futures Trading Commission (CFTC) of its intent to self-certify markets resembling single-game and prop bets. During March Madness, it offered “to win” markets on individual games.
Some state regulators and industry observers argue that Kalshi’s event contracts, which the company claims fall under the CFTC’s jurisdiction, effectively amount to unlicensed sports betting. While Kalshi remains the primary focus, other prediction market providers are also facing state-level pushback.
Kalshi’s partner Robinhood, which distributes sports event contracts through Kalshi’s platform, received cease-and-desist notices from regulators in New Jersey and Ohio. Additionally, Massachusetts Secretary of State Bill Galvin has subpoenaed Robinhood.
Recently, the Ohio Casino Control Commission (OCCC) issued a cease-and-desist letter to Crypto.com, another company offering similar contracts. In response to the regulatory pushback, Kalshi has filed federal lawsuits against the New Jersey Division of Gaming Enforcement (DGE) and the Nevada Gaming Control Board (NGCB), claiming they are violating its federally protected right to offer event contracts under the CFTC’s exclusive regulatory authority.
In New Jersey, after Kalshi requested a temporary restraining order and preliminary injunction, a hearing set for April 2 was postponed. The parties agreed to skip the temporary order and move forward with the preliminary injunction. The DGE has until April 18 to file its response, and Kalshi must reply by April 23.
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