Connecticut sued prediction market company Kalshi on Thursday, seeking to block the platform from offering sports-based wagers in the state and accusing the company of illegally operating an unlicensed sports betting business.The lawsuit, filed by Attorney General William Tong, a Democrat, argues that Kalshi’s sports event contracts are no different from traditional sports wagers and therefore must comply with Connecticut laws requiring sports betting operators to obtain a state license and follow regulations designed to protect consumers.“Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticut’s commonsense consumer protection laws,” Tong said in a press release. “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.”
Kalshi offers contracts based on the outcomes of live sporting events, portions of games, future events during sporting contests, and individual athlete performance statistics. The company has also offered contracts covering team wins, league rankings, point totals, point spreads, and so-called “combos,” which Connecticut officials characterized as essentially parlays.The state alleged that Kalshi has marketed its sports contracts as legal alternatives to regulated sportsbooks, such as DraftKings, including by advertising itself as “The First Nationwide Legal Sports Betting Platform.” Kalshi has also promoted its products as “investments” and claimed its platform is “legal in all 50 states,” according to the lawsuit.Between 80% and 90% of Kalshi’s offerings were sports event contracts as of February 2026, according to a report the company submitted to the U.S. District Court for the District of Connecticut, according to the lawsuit.A supporter checks the gambling site Kalshi just before New York Assemblyman Alex Bores gives a speech to supporters at his watch party at The Freehand Hotel after conceding the congressional race to Micah Lasher, who will replace Rep Jerry Nadler (D-NY) in NY’s 12th Congressional District, on June 23, 2026, in New York. (Photo by Laura Brett/Getty Images)
