Connecticut's Attorney General, Department of Consumer Protection, and Governor jointly announced a civil enforcement action against Kalshi on August 27, 2026. The complaint alleges unlicensed sports wagering, underage access, and contracts on Connecticut college teams. Here's what it means for your account.
What happened on August 27, 2026
Connecticut's Attorney General William Tong, DCP Commissioner Bryan T. Cafferelli, and Governor Ned Lamont filed a civil enforcement action against Kalshi in Hartford Superior Court. Connecticut is seeking a court injunction to block Kalshi from offering sports contracts to Connecticut residents, along with disgorgement of revenue and civil penalties. Kalshi has removed by Kalshi to federal court.
Connecticut filed a four-count complaint alleging unlicensed sports wagering and consumer protection violations — including underage gambling access and contracts on Connecticut college teams. Specific count details are being verified against the court filing.
Connecticut law cited: Conn. Gen. Stat. §§ 53-278b, 53-278d (illegal gambling); CUTPA §§ 42-110 et seq.; §§ 12-863(a)(1), 12-850(30) (underage and college team prohibitions).
Connecticut gaming law (Conn. Gen. Stat. §§ 12-863(a)(1) and 12-850(30)) explicitly prohibits contracts on Connecticut intercollegiate sports teams. This restriction was embedded in Public Act 21-23 — the 2021 legislation that legalized online sports betting in Connecticut — specifically to protect in-state collegiate programs from wagering pressure.
The complaint alleges Kalshi offered contracts on Connecticut college teams, which state law prohibits regardless of whether the platform holds a federal license. Connecticut courts and federal courts handling removed Connecticut cases have consistently held that state athletic protections are not preempted by the Commodity Exchange Act.
Permanent Injunction
Stop Kalshi from offering sports contracts to Connecticut residents.
Disgorgement
Return all revenue earned from Connecticut residents — the most aggressive remedy sought by any state to date.
Restitution
Compensation to Connecticut consumers harmed by Kalshi's alleged unlawful conduct.
Civil Penalties
Monetary penalties under CUTPA for each violation of Connecticut consumer protection law.
The disgorgement demand — returning all Connecticut revenue — is among the most expansive remedies sought by any state in the ongoing wave of prediction market enforcement actions.
Part of a broader state enforcement wave
Connecticut joins at least nine other states and the 6th U.S. Circuit Court of Appeals that have taken legal or regulatory action against Kalshi. Every removed civil enforcement action brought by a state has been remanded back to state court. States have prevailed on every motion for temporary restraining order or preliminary injunction in state court.
View full state enforcement trackerConnecticut residents
Access risk is real. Connecticut is seeking a permanent injunction — if granted, Kalshi would be required to halt Connecticut access. Your account funds are held in CFTC-cleared trust accounts and are not at risk of seizure by state courts. Monitor Kalshi's platform access notices and the Connecticut state hub page for updates.
Non-Connecticut users
No immediate account impact. Kalshi removed the case to federal court, where procedural timelines are longer. Watch whether other states adopt Connecticut's disgorgement demand — it is more aggressive than what prior state actions sought.
Nationwide significance
The disgorgement of all Connecticut revenue is the most expansive state remedy yet. If courts order it, the precedent could influence pending and future state actions. This is distinct from injunctive relief — disgorgement specifically targets revenues already collected.
December 3, 2025
Connecticut DCP issued cease-and-desist order to Kalshi, Robinhood Derivatives, and Crypto.com for unlicensed online gambling.
portal.ct.gov/dcpEarly 2026
Kalshi filed suit in federal court seeking a preliminary injunction to block Connecticut enforcement.
August 2026
Federal Judge Vernon Oliver denied Kalshi's motion for a preliminary injunction. Kalshi appealed to the Second Circuit Court of Appeals.
August 27, 2026
CT AG William Tong, DCP Commissioner Bryan T. Cafferelli, and Governor Lamont filed this civil enforcement action in Hartford Superior Court. Kalshi moved the case to federal court.
portal.ct.gov/agConnecticut Prediction Markets
Full CT legal status, platform access, and court rulings.
CFTC Ruling in CT: Different Proceeding
The federal preemption ruling — distinct from today’s civil complaint.
Kalshi State Enforcement Tracker
Every state action against Kalshi in one place.
New York AG Lawsuit Explained
Parallel state enforcement action and what it means for NY users.
Kalshi Legal Risk Explainer
The cumulative legal picture across all active proceedings.
State Regulations Map
Prediction market access and restrictions across all 50 states.
Primary Sources
Complaint-specific counts and details will be updated as the court filing becomes publicly available. Confirm current platform access at kalshi.com.
