Connecticut Says Prediction Market Platforms Are Leaving After Cease-and-Desist Orders

Last month, Connecticut sent cease-and-desist notices to nine prediction market platforms. This came after Ohio sent 10 cease-and-desist notices after the Sixth Circuit ruled in favor of Ohio and Tennessee, stating they could apply their gambling laws to them. 

Now, according to Department of Consumer Protection (DCPO) Commissioner Bryan Cafferelli, three prediction market platforms have left Connecticut. 

“Our actions sent a clear message,” Cafferelli said. “We will not tolerate illegal prediction market activity that preys upon the most vulnerable consumers. Three prediction market operators heard that message and are leaving our state accordingly. We are hopeful the rest will decide targeting Connecticut consumers isn’t worth breaking the law.”

According to the CT Post, Webull, Gemini, and ProphetX have left Connecticut. That said, prediction market analyst Mick Bransfield said ProphetX hasn't left. 

"CORRECTION: ProphetX has not pulled out of Connecticut. @connpost seems to have an error/typo," Bransfield said on X. 

CORRECTION: ProphetX has not pulled out of Connecticut. @connpost seems to have an error/typo.

— Mick Bransfield (@MickBransfield) October 6, 2026

Connecticut Continues Prediction Market Crackdown

The other six companies that sent notices were Polymarket, Coinbase, Robinhood, Crypto.com, Novig, and Underdog. Connecticut also sued Kalshi last August, and a judge ruled in the state's favor. 

“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 Attorney General William Tong.

Kalshi appealed that ruling to the Second Circuit. 

States Take Different Legal Approaches to Prediction Markets

The cease-and-desist notices in Ohio were sent to the following states: 

• Underdog
• Gemini
• Polymarket
• Webull
• Plus500
• Coinbase
• ProphetX
• Novig
• Robinhood
• Moomoo

Interestingly, Crypto.com received a letter in Connecticut, but not in Ohio. That's because it withdrew sports markets last December.

However, an Illinois judge ruled in favor of the Commodity Futures Trading Commission and Kalshi, finding that sports contracts were likely swaps and adding more layers to this ongoing nationwide legal battle.