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Connecticut sues Kalshi over alleged 'illegal, unlicensed' sports betting operation

The state says Kalshi lacks sportsbook licenses and consumer safeguards, while the company argues federal derivatives law bars state regulation.

  • On Thursday, Connecticut sued Kalshi to block unlicensed sports gambling, with Attorney General William Tong, Consumer Protection Commissioner Bryan T. Cafferelli, and Governor Ned Lamont seeking an injunction to stop the platform's sports event contracts.
  • Officials maintain that contracts tied to sporting outcomes fall under state gambling laws, while Kalshi argues federal oversight under the Commodity Exchange Act preempts state authority over the products.
  • This litigation joins a growing collection of cases involving more than a dozen states; recent federal rulings in New York and Connecticut denied Kalshi's requests for injunctions, allowing state enforcement to proceed.
  • Jovy Dedaj, Kalshi's head of litigation, criticized the suit as 'arbitrary and inconsistent' enforcement, while the company appeals an earlier federal ruling to the Second Circuit.
  • The Commodity Futures Trading Commission is also suing states, including Connecticut, to defend its exclusive authority over prediction markets, leaving the jurisdictional question unresolved across federal and state proceedings.
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WFSB broke the news in Connecticut, United States on Thursday, August 27, 2026.
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