Connecticut sues Kalshi to stop illegal unlicensed sports betting
Connecticut has sued Kalshi to halt what the state alleges is illegal unlicensed sports betting. The state's complaint targets Kalshi's sports event contracts, which Connecticut says resemble sports wagers, including contracts on whether a team or player will win a sporting event. The lawsuit marks another front in the regulatory pressure on Kalshi's sports contract offerings beyond the CFTC.
Adds a state-level legal challenge to Kalshi's sports contracts alongside federal CFTC proceedings, creating dual litigation risk that could force geoblocks or product changes even if Kalshi prevails federally.
Connecticut joins Baltimore, Washington, and at least five other state or municipal actors in actively litigating against Kalshi's sports contracts, with Novig now also defensive-filing across multiple jurisdictions as the preemption-vs-local-gambling-law fight spreads platform to platform.