Connecticut sues Kalshi over sports contracts offered without state gambling license
Connecticut sues Kalshi for offering sports betting contracts without a state gambling license, arguing they are unlicensed sports wagers.Summary
Connecticut Attorney General William Tong, alongside Department of Consumer Protection Commissioner Bryan T. Cafferelli and Governor Ned Lamont, filed a lawsuit seeking an injunction to stop Kalshi from offering sports event contracts to state residents without a gambling license. The state argues that Kalshi's yes-or-no contracts on game outcomes, point spreads, and player statistics function as sports wagers and must comply with Connecticut's licensing and consumer protection laws, which include safeguards for minors, problem gambling, and customer funds. Kalshi contends its contracts are federally regulated derivatives under the exclusive authority of the Commodity Futures Trading Commission (CFTC) and sued Connecticut in federal court. However, U.S. District Judge Vernon Oliver denied Kalshi's request for a preliminary injunction, and the Second Circuit denied temporary relief pending appeal. The CFTC has also sued Connecticut and two other states over similar jurisdictional claims. Connecticut's complaint further alleges Kalshi misleadingly marketed its products as "legal in all 50 states" and as lawful alternatives to licensed sportsbooks. Connecticut legalized regulated sports betting in 2021.
(Source：Readwrite)