The Connecticut Department of Consumer Protection issued cease-and-desist orders to nine prediction market platforms. They include big names like Robinhood and Polymarket, as well as Underdog, the company now suing the state.
Connecticut said contracts tied to sporting events fall under gambling rules when offered to residents without sports betting licenses. The state is one of more than a dozen that have taken action against prediction markets and sporting-event contracts.
Underdog said they are a federally regulated Designated Contract Market, and said enforcement action from the state counts as “exclusive jurisdiction."