Connecticut sues Kalshi over sports event contracts

Connecticut has filed a lawsuit against Kalshi over the platform's sports event contracts, becoming the latest state to take legal action against the prediction market operator as its regulatory disputes multiply across the country.

Kalshi Head of Litigation Jovy Dedaj responded by calling the move "arbitrary and inconsistent enforcement," pointing to other platforms operating in Connecticut without facing equivalent action.

The lawsuit advances a legal theory that state gambling regulators, not the CFTC, hold jurisdiction over sports-adjacent prediction market contracts — the same argument Nevada pursued in federal court. Connecticut's decision to file independently, rather than join an existing coalition, signals that states are not waiting for a coordinated strategy to emerge from ongoing federal proceedings.

For Kalshi, the timing compounds an already dense litigation calendar. Nevada's daily fine proceedings remain active. Massachusetts' injunction on the Red Sox partnership has not been lifted. A ninth circuit panel has already heard Nevada use Kalshi's own federal tax arrangement as evidence against preemption.