On August 25, 2026, prediction market platform Kalshi announced new exclusive and multi-year partnerships with 5 Major League Baseball (MLB) teams, including the Los Angeles...
Connecticut’s Attorney General William Tong, Department of Consumer Protection (DCP) Commissioner Bryan Cafferelli, and Governor Ned Lamont shared on August 26, 2026, that the state has sued prediction market operator Kalshi for offering illegal sports betting.
The lawsuit is seeking to receive an injunction against Kalshi, asking the court to block the operator’s website in Connecticut. For context, the state had first targeted Kalshi back in December 2025, when the DCP had ordered Kalshi, Crypto.com, and Robinhood to cease their operations in the state.
In response to the enforcement action, Kalshi took the case to the federal court; however, a U.S. District Judge denied the company’s motion. Since then, Kalshi moved on to continue the case in the U.S. Court of Appeals for the Second Circuit.
Attorney General Tong commented:
“Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticut’s commonsense consumer protection laws. These laws exist for a reason – to protect minors, to prevent problem gambling, to ensure your money is safe and your personal information is protected. None of that is happening now on Kalshi, and we’re suing to put a stop to it.”
Governor Lamont added:
“These prediction markets put Connecticut consumers, young people, our student athletes, and those suffering from gambling addiction at serious risk. They have made it clear their goal is profits over people, and that’s why we are holding them accountable.”
Additionally, the state is also facing accusations, as the CFTC sued Connecticut in April 2026, arguing against state regulation of prediction markets.
