Connecticut sues Kalshi over unlicensed sports event contracts

Connecticut has sued Kalshi and asked a court to block the prediction market platform from offering sports event contracts that state officials classify as unlicensed sports wagering. Summary Connecticut has sued Kalshi seeking an injunction against its sports event contracts. State officials argue the contracts amount to unlicensed sports wagering. Kalshi maintains its markets fall under exclusive federal CFTC oversight. The company has appealed an earlier Connecticut ruling to the Second Circuit. The Connecticut Attorney General’s Office said Wednesday that Attorney General William Tong, Department of Consumer Protection Commissioner Bryan T. Cafferelli, and Governor Ned Lamont are seeking an injunction requiring Kalshi to stop offering the contracts in the state. Connecticut officials have maintained that contracts tied to the outcome of sporting events fall under state gambling laws even though Kalshi operates as a federally regulated derivatives exchange. The lawsuit extends a dispute that began in December 2025 and is now being litigated alongside separate federal proceedings involving the Commodity Futures Trading Commission. “Sports event contracts are no different than spo...