Connecticut Issues Cease-and-Desist Orders to Nine Prediction Market Platforms

Connecticut gaming regulators through the Department of Consumer Protection delivered cease-and-desist orders to nine prediction market platforms in September 2026, and those platforms include Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict; the directives instruct them to halt all offerings and promotions of sports event contracts to state residents immediately because officials classify those contracts as unlicensed sports betting.

Governor Ned Lamont and DCP Commissioner Bryan T. Cafferelli made the joint announcement that also encompassed nearly thirty subpoenas directed at gaming service providers along with media outlets, while the orders require the listed platforms to permit Connecticut customers full access to withdraw their funds without delay.

Details of the Regulatory Action

The enforcement targets platforms that facilitate trading on outcomes of sports events through event contracts, and regulators determined these activities fall under the state's sports betting licensing framework; platforms received explicit instructions to stop accepting new wagers or promotions aimed at Connecticut users, and compliance steps include freezing new activity while processing existing account withdrawals.

Officials coordinated the action across multiple entities, issuing the primary cease-and-desist documents alongside the subpoenas that seek information from service providers and media companies involved in advertising or supporting the prediction markets; this approach allows the Department of Consumer Protection to gather further data on how these platforms reach state residents.

Platforms Named in the Orders

The nine platforms span both established cryptocurrency exchanges and specialized prediction market operators, and they are Polymarket, Coinbase, Crypto.com, Robinhood, ProphetX, Novig, Webull, Gemini, and Underdog Predict; each received the same directive to cease sports-related contract offerings because the Department views the contracts as equivalent to sports wagers that require specific state approval.

Regulators emphasized that the orders apply specifically to sports event contracts rather than other forms of prediction trading, and the platforms must now adjust their systems to block Connecticut IP addresses or accounts from accessing those particular markets while ensuring users can retrieve deposited funds.

Announcement and Official Statements

Governor Ned Lamont and Commissioner Bryan T. Cafferelli presented the enforcement steps in a formal release dated September 2026, and the document outlines both the cease-and-desist orders and the accompanying subpoenas as part of ongoing efforts to regulate sports-related wagering activities within state boundaries; the release specifies that platforms must allow Connecticut customers to withdraw funds as a core compliance requirement.

The Department of Consumer Protection continues to monitor compliance, adn the subpoenas issued to nearly thirty additional parties aim to trace how prediction market services reach Connecticut residents through various channels including advertising and payment processing.

Requirements for Affected Platforms

Each platform must immediately stop promoting or offering sports event contracts to anyone located in Connecticut, and they are required to maintain mechanisms that let users withdraw remaining balances without additional barriers; failure to comply could lead to further enforcement measures under state gaming statutes.

Regulators noted that the action focuses on unlicensed sports betting rather than broader prediction market operations, which leaves room for platforms to continue non-sports contracts provided they do not involve Connecticut residents in the prohibited categories.

Context of the September 2026 Enforcement

The timing aligns with broader state initiatives to clarify the boundary between licensed sports betting and other event-based trading products, and the Department of Consumer Protection has positioned these orders as a direct response to platforms expanding sports-related offerings without obtaining required approvals; subpoenas extend the reach of the inquiry beyond the nine primary targets.

Connecticut residents who hold accounts on any of the named platforms received instructions through the regulatory notice to complete withdrawals, and the Department continues to provide guidance on how users can verify their account status during this transition period.

Conclusion

The cease-and-desist orders and subpoenas issued in September 2026 mark a clear step by Connecticut regulators to bring sports event contracts under existing licensing rules, and the nine platforms along with the additional recipients of subpoenas now face defined compliance obligations centered on stopping prohibited offerings and enabling fund withdrawals; further developments will depend on responses to the subpoenas and ongoing monitoring by the Department of Consumer Protection.