Connecticut Sues Kalshi Over Sports Event Contracts

Connecticut has filed a lawsuit against prediction market platform Kalshi, seeking a court injunction to stop the company from offering sports-related event contracts that state officials classify as unlicensed sports wagering. The action, announced on August 27, 2026, escalates a months-long legal battle over whether these contracts are federally regulated derivatives or state-regulated gambling products. Connecticut Attorney General William Tong stated that the state is seeking an injunction requiring Kalshi to cease offering what it identifies as unlicensed sports wagers.