Connecticut has sued Kalshi to block the platform from offering sports-related event contracts, escalating the state's months-long legal fight against the prediction markets platform.
In a statement released Wednesday, Connecticut Attorney General William Tong said the state is seeking a court injunction requiring it to cease offering what it identifies as unlicensed sports wagers.
"Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticut's commonsense consumer protection laws," said Tong.
Connecticut Governor Ned Lamont said that Kalshi's prediction markets put the state's consumers and young people at serious risk.
"When we legalized sports wagering in 2021, the goal was to create a safe, responsibly regulated market for Connecticut consumers, not to open a free-for-all on sports betting," Lamont added.
